Western Cape farmers say they will be hard hit if AGOA not renewed

Agri Western Cape says commercial farmers exporting to the United States of America will be hard hit if the African Growth and Opportunity Act (AGOA) agreement with America is not renewed.

President Cyril Ramaphosa is heading a delegation to the US to discuss, among others, trade and tariff agreements.

The AGOA grants preferential access to the US market for qualifying exports from South Africa which includes citrus fruit and wines.

US President Donald Trump’s unilateral hiking of tariffs early this year, unsettled local citrus and wine farmers.

Agri West Cape CEO Jannie Strydom says farmers will have to go back to the drawing board if the agreement is not rekindled.

“75% of all agricultural products exported to the United States are covered under the AGOA agreement so it’s a huge benefit for the agricultural sector in terms of our opinion regarding the renewal of the AGOA agreement. I am personally of the opinion that given what’s going on in the global trade market, I am of the opinion that I don’t think that it would be renewed we will have to have a Plan B,” says Strydom.

VIDEO | Concerns over future of AGOA in South Africa