South Africa braces for possible US trade benefits withdrawal

JOHANNESBURG - South Africa faces the prospect of losing preferential access to American markets as relations with the United States deteriorate, according to President Cyril Ramaphosa.

Ramaphosa cautioned that the country should ready itself for a possible suspension or withdrawal of benefits under AGOA, the US trade programme that has provided duty-free access to African nations meeting certain governance and economic criteria.

The warning reflects deepening rifts between Pretoria and Washington over various policy matters. The US has previously raised concerns about South Africa's stance on international issues and domestic governance standards that underpin AGOA eligibility.

Loss of AGOA benefits would have significant implications for South African exporters, particularly those in the automotive and textile sectors that have leveraged the duty-free access to expand shipments to the US market. The initiative has been a cornerstone of trade relations between South Africa and America for over two decades.

Ramaphosa's remarks signal that the South African government recognises the severity of the diplomatic situation and is taking contingency measures to mitigate potential economic fallout from any trade status change.