The South African Federation of Trade Unions (SAFTU) condemns the Trump administration’s decision to withdraw South Africa’s benefits under the African Growth and Opportunity Act (AGOA), with the withdrawal due to take effect on 1 January 2027.
This is an act of economic pressure against a sovereign country that has the right to determine its own domestic and international policies. It comes amid a pattern of hostility, threats and punitive measures directed at South Africa by the Trump administration, including the freezing of financial assistance, attacks on our land reform programme, the expulsion of our ambassador and the imposition of tariffs on our exports.
The United States says its decision is based on concerns about trade and investment barriers, corruption, and South Africa’s foreign policy and national security relationships. SAFTU rejects any attempt to use trade preferences to dictate South Africa’s national priorities. We are also deeply concerned that this decision comes in the context of South Africa’s principled position on Palestine and its case before the International Court of Justice. South Africa must not be expected to abandon international law, human rights or solidarity with oppressed people in exchange for preferential access to the US market.
AGOA was established to provide eligible African countries with preferential access to the US market. It must not become a means for Washington to dictate the political, economic or diplomatic choices of African countries. South Africa did not defeat apartheid only to surrender its sovereignty to another imperial power.
The withdrawal will remove AGOA tariff preferences from qualifying South African exports. It does not, by itself, end South African exports to the United States: goods will still be able to enter the US market, but affected products will face the tariffs that apply outside AGOA. The additional cost will vary by product, and will affect exporters’ competitiveness and margins differently.
The DTIC has reported that about 10% of South African exports to the US entered under AGOA in 2025, valued at nearly US$1.7 billion. This was down from US$4 billion in 2024. About 89% of South African exports to the US entered under ordinary World Trade Organisation terms, while AGOA exports accounted for roughly 1% of South Africa’s total global exports.
These figures show that the withdrawal does not threaten all South African exports or the entire trade relationship with the United States. But the impact on the sectors and businesses that relied on AGOA preferences could be serious. The full consequences will depend on the products affected, the tariffs they face and whether exporters can retain customers or find alternative markets. Government has yet to publish a complete assessment of the sectoral effects or a verified estimate of potential job losses.
The risks are real for workers and communities connected to affected export value chains, including agriculture, agro-processing, automotive components and manufacturing. Farmworkers, factory workers and others in these sectors must not be left to carry the cost of a dispute between governments. Government must identify the exposed sectors and workplaces, engage organised labour and affected communities, and set out measures to protect jobs, incomes and livelihoods.
The Trump administration’s claims about South Africa’s trade policies and foreign relations must not be treated as a licence to dictate our national priorities. South Africa is a sovereign constitutional democracy. Its policies on land reform, economic transformation, affirmative action and international relations must be determined through democratic processes by the people of South Africa.
At the same time, South Africa’s vulnerability to external economic pressure cannot be blamed on Washington alone. Decades of neoliberal policies, austerity, privatisation, deindustrialisation and dependence on foreign markets have weakened productive capacity. This crisis must prompt a decisive shift towards an economy that produces for people’s needs, creates decent jobs, develops local industries and builds productive capacity.
SAFTU calls for an alternative economic programme based on:
- Urgent industrialisation and localisation: Rebuild manufacturing capacity, strengthen local supply chains and reduce dependence on imported finished goods while domestic factories close.
- Diversified trade relations: Expand mutually beneficial trade with African countries, BRICS members, the Global South and other partners. The African Continental Free Trade Area must support regional industrial development and employment.
- Protection for workers and affected communities: Government must urgently convene organised labour, affected industries and communities to identify exposure and agree on practical measures to protect jobs, incomes and livelihoods.
- An end to austerity: The response to external economic pressure must not be further cuts to public spending, wage restraint or deterioration in public services. Public investment must expand to support domestic production and employment.
- Democratic control of economic policy: Trade and investment arrangements must serve workers and the broader population, rather than simply guarantee profits for multinational corporations and local economic elites.
- African economic solidarity: South Africa must work with other African countries to build regional markets, industrial capacity and collective bargaining power in international trade.
SAFTU calls on the South African government to continue engaging the United States through diplomatic and trade channels, while firmly rejecting any attempt to use AGOA as leverage for political or economic concessions that undermine our constitutional obligations and national sovereignty. Government must also provide workers and the public with a clear assessment of the exposure and a credible plan to protect affected jobs and communities.
Issued on behalf of SAFTU by the General Secretary, Zwelinzima Vavi.
For media inquiries, contact the National Spokesperson at
Newton Masuku
newtonm@saftu.org.za
0661682157
Media Officer
Asive Dyani
0719019564
