South African President Cyril Ramaphosa warned Oct. 19 that exclusion from a U.S. trade preference program would threaten jobs, as Pretoria seeks other markets amid uncertainty over its eligibility.
South Africa has used the African Growth and Opportunity Act (AGOA) for years to ship qualifying goods to the United States without import duties. Across eligible African countries, the program covers thousands of product categories. Ramaphosa said losing access would have a “devastating” effect on jobs.
Some U.S. officials have suggested excluding South Africa, Reuters reported. Ramaphosa said his government is discussing the country's status with U.S. counterparts, but he does not know whether it will remain in the program.
Ramaphosa said overseas trips by him and Deputy President Paul Mashatile were part of efforts to find new buyers for South African goods. He cited a recent trade agreement with China. China also introduced a tariff waiver in May for South African goods that qualify.
Reuters reported that President Donald Trump's administration has taken action against South Africa over Trump's claim that white people are persecuted there. South Africa's government rejects the allegation and says fringe groups have spread it.
Ramaphosa said the government is preparing for possible exclusion while its discussions with Washington continue.
