US trade preferences threaten 10,000 South African jobs
By the AFREEQUE newsroom, based on IOL
The announced end of US trade preferences could threaten up to 10,000 jobs in South Africa, particularly in citrus and manufacturing. Cosatu estimates the most likely scenario at 3,000 job losses, IOL reports, while exporters are still assessing the impact.
Up to 10,000 South African jobs could be at risk if the United States withdraws South Africa’s preferential access to the AGOA programme, which reduces US tariffs on certain African products. The Congress of South African Trade Unions (Cosatu) estimates probable losses at 3,000 jobs and the worst-case scenario at 10,000, according to its parliamentary coordinator Matthew Parks, quoted by IOL.
Agriculture, particularly citrus exports, and manufacturing are among the sectors most exposed in the provinces of Western Cape and Northern Cape. At least 35,000 agricultural jobs depend on citrus exports to the United States, although the Citrus Growers’ Association of Southern Africa considers it too early to assess the losses. Citrus accounts for between 5% and 6% of the volume exported by the country to the US market, according to IOL.
Washington announced on Monday its intention to end South Africa and Rwanda’s eligibility for AGOA from 1 January 2027. US Trade Representative Jamieson Greer cited obstacles to US trade and investment, corruption, as well as national security and foreign policy interests. Cosatu is calling for negotiations to continue and for support measures, including industrial incentives, tax exemptions and temporary assistance for workers.
The announcement follows warnings published on 2 and 3 November about jobs threatened by AGOA and the US decision to exclude South Africa and Rwanda from AGOA.
