Countdown to Agoa Expiry: South Africa’s Urgent Trade Push

As the clock ticks toward the expiry of the African Growth and Opportunity Act (Agoa), South Africa is in a race to convince the United States to extend the trade framework. The current deal, which has underpinned US-Africa trade for decades, is set to lapse on Tuesday, and the looming threat of a 30% US tariff on South African exports has added urgency to negotiations.

Trade, Industry, and Competition Minister Parks Tau is leading intensive talks with Washington, navigating a complex web of trade disputes, including the US government’s criticism of South Africa’s Black Economic Empowerment (BEE) policies. These requirements, which mandate at least 30% ownership by historically disadvantaged groups in certain sectors, have been singled out by the Trump administration as a barrier to a reciprocal trade deal.

The Trump Tariff and Bilateral Tensions

In August, US President Donald Trump moved to impose a 30% tariff on South African goods, citing trade imbalances and non-reciprocal policies. Initially, the US paused the tariff for 90 days to allow for negotiations. Despite South Africa submitting a proposed framework in May, the discussions failed to produce a formal agreement by the August deadline.

Over the weekend, Tau confirmed that both sides are now engaged in drafting and reviewing detailed negotiation texts. “We’ve agreed to a revised text for consideration, and that’s where we are in terms of what we will be discussing with them,” Tau said, describing the response as a step in the right direction.

President Cyril Ramaphosa has also weighed in, warning that Agoa’s expiry could jeopardize 25 years of trade progress. He highlighted its impact on jobs in auto assembly, manufacturing, and high-tech sectors, framing the negotiations as critical for South Africa’s economic stability.

Experts Wary: Is It Too Late?

Economist Dawie Roodt cautioned that time may have run out, arguing that the US remains unimpressed with South Africa’s proposals. “Here we are dealing with Trump, and South Africa did not do enough to make him happy,” Roodt said, noting that Pretoria may have to make concessions on unrelated political matters to secure a deal.

Global trade specialist Thina Nodada echoed the concern, warning that South Africa may have to brace for both the 30% tariffs and the potential loss of Agoa benefits. “Trump seems pretty set in his ways. We have to prepare for disruption,” she said.

International relations analyst Dr Noluthando Phungula offered a more optimistic perspective, suggesting that an extension request could buy crucial time. “It’s not necessarily too late,” Phungula said, “but the window is very tight, and the odds are stacked against a smooth restoration of Agoa benefits.”

Social Media and Public Sentiment

Online, South Africans expressed frustration and anxiety over the looming trade setbacks. On Twitter, users warned that lost Agoa benefits could threaten manufacturing jobs and destabilize local industries. Others called for a more strategic and proactive approach to US trade relations.

One trade commentator tweeted: “This is not just about tariffs. Agoa supports livelihoods across South Africa. Time to step up or face real economic consequences.”

South Africa now finds itself in a diplomatic balancing act, pushing for extensions, revising negotiation texts, and hoping for concessions from a US administration known for its unpredictability. With the expiry date fast approaching, the coming days could determine whether Pretoria preserves decades of trade progress or faces a new era of tariffs and economic uncertainty.

{Source: IOL}

Follow Joburg ETC on Facebook, Twitter , TikTok and Instagram

For more News in Johannesburg, visit joburgetc.com