Steenhuisen Sounds Alarm Over AGOA Trade Deal, Urges South Africa to Broaden Export Horizons

South Africa may soon find itself on shaky ground with one of its most important trade lifelines—the African Growth and Opportunity Act (AGOA). Minister of Agriculture John Steenhuisen has warned that the future of the country’s AGOA benefits remains unclear, and he’s urging government and industry to look beyond the US for trade opportunities.

Despite recent diplomatic overtures, including a high-level meeting between President Cyril Ramaphosa and US President Donald Trump, the continuation of AGOA in its current form appears unlikely. Steenhuisen, who was part of the South African delegation to Washington last week, said the country must now face the possibility that AGOA may return in a diminished or restructured form.

Reality Check: Congress Holds the Keys

Speaking to Newzroom Afrika, Steenhuisen clarified that any decisions about AGOA ultimately rest with the US Congress. “AGOA is a creature of Congress,” he said. “We’ve had productive conversations, but it’s clear that we’ll need to engage lawmakers directly. The current version of AGOA as we know it may not survive.”

The AGOA agreement has given South Africa duty-free access to US markets for products like vehicles, citrus, and textiles. That preferential access has played a key role in supporting the country’s agriculture, manufacturing, and export-driven sectors.

But recent tensions between the two nations have cast doubt over AGOA’s future. Farmers and exporters are increasingly concerned about what could happen if the agreement is not renewed or if its terms are scaled back.

A Shift in Trade Winds

Steenhuisen acknowledged the efforts of Minister Parks Tau in laying the groundwork for a new trade proposal that showed South Africa’s seriousness. However, he also cautioned that South Africa cannot afford to place all its eggs in one basket.

“This blanket tariff-free access may become a thing of the past. That’s the signal we’re getting,” Steenhuisen warned. “Our approach has to be: hope for the best, but prepare for the worst.”

He stressed that the country must act now to secure new trade channels and strengthen ties with emerging markets. Diversifying export destinations could help cushion the blow if South Africa’s AGOA benefits are curtailed.

What’s at Stake?

The stakes are high. AGOA has not just benefited large corporations—it’s been a lifeline for thousands of small farmers and manufacturing workers across South Africa. Losing duty-free access to the massive US market could slow economic growth and increase unemployment.

With the 2025 AGOA review looming, Steenhuisen’s message is a clear call to action: be proactive, engage with US lawmakers, but most importantly—diversify.

As the future of AGOA hangs in the balance, South Africa faces a pivotal moment in its trade history. Minister Steenhuisen’s warning is more than just a caution—it’s a rallying cry for strategic economic resilience. The country must act swiftly to ensure that its trade future doesn’t rest on a single agreement.

{Source: IOL}

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