News24 | Terry Gale | Mr President, take urgent action to safeguard AGOA benefits

Terry Gale, CEO of Exporters Western Cape, calls for urgent action to protect South Africa’s access to the US market in an open letter to President Cyril Ramaphosa

Viacheslav Chernobrovin/Getty Images

Terry Gale, CEO of Exporters Western Cape, calls for urgent action to protect South Africa’s access to the US market in an open letter to President Cyril Ramaphosa. Exporters already face multiple rising pressures and cannot absorb removal from AGOA, he writes.

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Dear President Ramaphosa,

As my recent correspondence with the Presidency indicated, I wish to reiterate the importance of South Africa’s continued eligibility for the African Growth and Opportunity Act (AGOA), which has been extended until 31 December 2028.

The uncertainty surrounding our trade relationship with Washington comes at a time when exporters are already under considerable pressure from tariffs, declining export values and increasing competition in international markets.

It is totally unacceptable that South Africans should have to “prepare” for the possibility of being removed from Washington’s duty-free trade programme for Africa, given the current impasse between the two countries.

The US president reviews countries’ eligibility for AGOA annually, with any removal requiring 60 days’ notice to Congress and the country concerned.

To take effect on 1 January 2027, an exclusion must be announced by 2 November 2026.

Time is not on our side – hence this plea, as we cannot afford to lose any more jobs, given our untenable unemployment rate.

We need urgent, constructive diplomatic engagement.

It is easy to say that we should replace the US with other export markets; however, it is not that easy, as we have noticed when trading with our BRICS partners.

Try exporting into China, India or Brazil.

Key trading partner

Since AGOA was signed by then-President Bill Clinton on 18 May 2000, the US has become one of the Western Cape’s most important and profitable trading partners over the past 26 years.

The latest 12-month rolling comparison shows that exports fell by 41%, from R16.89 billion between August 2024 and July 2025 to R10.02 billion between August 2025 and July 2026. Exports to the US supported approximately R12.98 billion in provincial GDP, 11 914 direct jobs and 35 467 indirect jobs.

The most affected product categories include fruit juices, with export values declining by 86% (from R953 million to R137 million); grapes by 79% (from R444 million to R91 million); yachts by 55% (from R1.4 billion to R628 million); wine by 38% (from R603 million to R371 million); and citrus by 17% (from R2.19 billion to R1.82 billion).

These figures demonstrate the serious consequences of losing access to the US market. The loss of AGOA eligibility would further undermine South African exporters and place additional strain on an economy that can ill afford further losses.

President Ramaphosa, we recognise that international trade negotiations are complex and that the relationship between South Africa and the US involves issues beyond commerce. Nevertheless, we urge your government to make protecting South Africa’s trade relationship with Washington an economic priority and to pursue every available avenue to resolve the current impasse.

We cannot afford to lose a valuable trading relationship that supports our economy. With South Africa’s AGOA eligibility at risk, urgent action is needed to protect our access to the US market and prevent further damage to exporters and employment.

Terry Gale is CEO of Exporters Western Cape.

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