COSATU Blames AfriForum and Solidarity for Strained US-SA Relations Amid AGOA Exit

US Moves to End AGOA Benefits for South Africa

The United States has announced its intention to remove South Africa from the African Growth and Opportunity Act (AGOA) as of January 1, 2027. This move, prompted by a notification to Congress from US President Donald Trump, marks a significant shift in trade relations between the two countries. AGOA has historically provided eligible African nations, including South Africa, with preferential access to the world’s largest economy, facilitating exports and supporting jobs across the continent.

The announcement was made following an annual review of AGOA eligibility for sub-Saharan African countries. US Trade Representative Jamieson Greer indicated that the decision was based on findings that South Africa and Rwanda were engaging in practices that contradicted AGOA requirements, such as posing barriers to US trade and investment and engaging in actions perceived as threats to US national security and foreign policy interests.

COSATU Raises Alarm Over Potential Job Losses

The Congress of South African Trade Unions (COSATU) has expressed deep concern over the US decision, warning that thousands of domestic jobsespecially in agriculture and manufacturingare now at risk. Matthew Parks, COSATU’s parliamentary co-ordinator, highlighted that AGOA had enabled duty-free access for South African exports and had been instrumental in boosting both national and regional economies.

“AGOA has provided lower tariff access to various African exports to the US market… and played an important role in boosting South African and many other African countries’ exports,” Parks noted. He also pointed out that AGOA had brought advantages for the US, such as the supply of African goods including critical minerals, and was estimated to help maintain direct jobs in both countries.

Parks emphasised the downstream effects of South Africa’s potential exclusion, stating, “We have already seen many jobs lost at factories and companies in Cape Town, Atlantis, Malmesbury, and Tulbagh, amongst others. We have seen the devastation it threatens to these workers and farmers’ abilities to take care of their families.”

Call for Urgent Government Action and Negotiation

COSATU has called on the South African government to make use of the period before the proposed exit to negotiate with the US. Parks noted the urgency, given the country’s high unemployment rate and weak economic growth. “It is important that South Africa’s government utilise the next 60 days before this exit comes into effect, to negotiate a favourable set of solutions to avert this potential blow,” he said.

Suggestions put forth by COSATU include ensuring negotiations are conducted based on facts and mutual respect and recognising South Africa as a constitutional democracy and sovereign international actor. Parks also urged the government to accelerate efforts to diversify the country’s export markets beyond the US, looking towards Canada, Brazil, Europe, Asia, and the rest of the African continent. At the same time, he advocated for support measures such as subsidies, incentives, tax relief, and assistance through the Unemployment Insurance Fund for at-risk workers, businesses, and communities.

Parks was adamant that South Africa could not afford to lose any more jobs or industry capacity amid already challenging economic circumstances.

COSATU Blames AfriForum and Solidarity for Bilateral Tensions

COSATU’s leadership pointed fingers at lobby groups AfriForum and Solidarity, blaming their efforts for exacerbating tensions between South Africa and the US. Parks criticised these groups for what he described as the promotion of “white persecution myths” and accused them of undermining South Africa’s standing in the international community through lobbying activities in the US. “They must now explain… why their livelihoods will now be lost. This is AfriForum, Solidarity et al’s legacy. They must own it,” Parks asserted, referring to the anticipated impact on workers and farmers of all backgrounds potentially affected by the end of AGOA benefits.

Government’s Position on US-South Africa Relations

Minister of Trade, Industry and Competition Parks Tau responded by stressing that the move to exclude South Africa from AGOA does not define the broader relationship between the two countries. He cautioned, however, that resolving the situation would depend on both parties’ willingness to engage constructively. Tau reiterated the value of the US as a trade and investment partner and highlighted South Africa’s commitment to pursuing a balanced, mutually beneficial relationship.

He added that the government would support affected sectors and remain focused on protecting national interests, while striving for practical solutions to expand trade and investment. Tau emphasized that South Africa would continue adhering to its constitutional responsibilities, transformation goals, and international obligations throughout any future trade discussions.

Broader Implications and the Path Forward

The loss of AGOA benefits has the potential to impact a range of sectorsfrom agriculture to motor manufacturingacross multiple South African provinces. Both COSATU and government officials have underscored the need for unity and proactive negotiation to safeguard the livelihoods of workers and the country’s economic stability.

While the precise outcomes remain uncertain, COSATU pledged to collaborate with government, industry, and international counterparts to seek solutions and protect jobs. Parks expressed confidence in South Africa’s ability to navigate the current challenges, stating, “South Africa is a resilient nation. It has overcome some of humanity’s darkest moments. We will navigate these turbulent times too.”