SA loses Agoa access from 1 January, raising job fears

South Africa will no longer be part of the US trade programme known as the African Growth and Opportunity Act (Agoa) from 1 January, and several prominent voices say the outcome was avoidable, The Citizen reported.

Warnings about jobs

Freedom Front Plus leader Corné Mulder said the consequences would be “enormous and extensive”, with substantial job losses. He blamed President Cyril Ramaphosa and International Relations Minister Ronald Lamola for the situation. Mulder said agriculture and vehicle manufacturing would be hit hard, as export earnings worth billions of rands would be lost to US import tariffs that did not apply under Agoa.

He also cited industry analysts, who say 125 000 jobs are directly at risk and more than 500 000 indirectly.

AfriForum deputy CEO Werner Human said South Africa’s approach to foreign affairs, together with the Expropriation Act being signed into law on 23 January 2025, played a direct part in the outcome. These are the views of the people quoted, and the report does not independently confirm them.

Farming and motor industry

AgriSA CEO Johann Kotze urged the government to keep up its diplomatic efforts, give exporters clear guidance and take practical steps to protect the sector’s competitiveness. Trade with the US will carry on, he indicated, but the conditions could shift.

Farm exports to the American market were worth $504 million (roughly R8.3 billion) in 2025, a 3% decline from the year before.

Wandile Sihlobo, the president’s agriculture envoy, said the change would add a 3.4% tariff. Products that now face duties of 12.5% could see them rise to as much as 15.9%.

Martlé Keyter, CEO of Operations at the Motor Industry Staff Association, said South African vehicles would still be sold in the US, but under the standard tariffs.

For carmakers, the heaviest damage came earlier. In August, the Automotive Business Council (Naamsa) noted that a 25% Section 232 tariff on vehicles and parts, imposed in 2025, had effectively wiped out the advantages of Agoa. South African vehicle exports to the US have since dropped by 83.2%.

What this means for workers

Agoa gave eligible African countries cheaper access to the US market, so losing it raises costs for exporters. The sectors most often named in the report are agriculture and automotive manufacturing, which employ large numbers of people. The job figures quoted are estimates from analysts, not confirmed losses, and much will depend on how exporters adjust and whether talks with Washington continue.

Workers in these industries may want to follow announcements from their employers and industry bodies in the coming weeks.

This story is based on reporting by The Citizen.