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A worker harvests grapes at the La Motte wine farm in Franschoek near Cape Town, South Africa
Experts have warned that uncertainty over jobs and trade still hangs over South Africa following the expiration of the African Growth and Opportunity Act (AGOA).
Political economist Professor Patrick Bond says in the absence of any relief on AGOA, South African goods will now face standard tariffs on exports to the United States.
This while certain products such as copper, pharmaceuticals and certain minerals are exempt.
Bond says US President Donald Trump’s tariffs on South African goods have led to a sharp drop in the country’s exports to the US during the second quarter of this year.
“So we’re still at 30%. And I think the most crucial exports hit hard now since end of July are in citrus and the vineyard products, the wine and the grapes, and also macadamia nuts. So we’re going to see lots of job losses in agriculture.”
Meanwhile, Trade, Industry and Competition Minister Parks Tau says he remains confident that an AGOA renewal is imminent.
Tau says his optimism follows his recent visit to Washington and New York, where he engaged with the US trade representatives and members of congress.
According to Tau, the initiative continues to enjoy bipartisan support for its renewal.
-Additional reporting by Tshepo Mongoai
