By Nellie Peyton.
President Cyril Ramaphosa said on Monday that the country must prepare for its potential exclusion from the United States’ duty-free trade initiative, AGOA, as relations between Washington and Pretoria have soured.
The African Growth and Opportunity Act (AGOA) gives eligible African countries duty-free access to the US market for thousands of products. South Africa has benefited from it for years.
President Donald Trump’s administration has cracked down on South Africa for what Trump claims is its persecution of white people. South Africa’s government says this is a falsehood spread by fringe groups.
Ramaphosa said it remained to be seen whether South Africa would remain part of AGOA and his government was in discussions with US counterparts. Some US officials have suggested South Africa should be excluded.
“I need, as president, to prepare us if it ever happens,” Ramaphosa said. He said the impact on jobs would be “devastating” and he and Deputy President Paul Mashatile have been travelling around the world to explore alternative markets.
Ramaphosa cited a recent trade agreement with China as a positive step. China introduced a zero-tariff scheme for qualifying South African goods in May.