COSATU warns of thousands of jobs at risk from AGOA
By the AFREEQUE newsroom, based on Congress of South African Trade Unions
Illustrative image · Khaya Motsa · Pexels · Licence PexelsSouth African union COSATU has warned that thousands of agricultural and industrial jobs are linked to US trade preferences that South Africa is due to lose in January 2027. It has highlighted the potential consequences for workers and farmers in a country where unemployment stands at 43.8%, according to COSATU.
The Congress of South African Trade Unions (COSATU) says South Africa’s exit from AGOA, the US trade preference programme for African countries, threatens thousands of agricultural and industrial jobs. The exclusion is due to take effect in January 2027, according to COSATU.
The union is urging the South African government to use the 60 days before the deadline to negotiate with Washington and avert a break in preferential trade. It is also calling for an emergency package including subsidies, tax incentives and support from the unemployment insurance fund for workers, businesses and exposed communities.
COSATU says jobs have already been lost at factories and businesses in Cape Town, Atlantis, Malmesbury and Tulbagh. It highlights South Africa’s unemployment rate of 43.8% and calls for talks based on respect for South Africa as a sovereign constitutional democracy.
AGOA has also helped South African vehicle exports to the US, using components produced in neighbouring countries, and is said to have supported around 200,000 direct US jobs, according to COSATU. The warning follows the US announcement of South Africa’s exclusion from AGOA in 2027, and then its removal from the AGOA programme.
