{"id":12677,"date":"2025-03-13T18:54:33","date_gmt":"2025-03-13T19:54:33","guid":{"rendered":"https:\/\/www.premium-partners.net\/?p=12677"},"modified":"2025-03-16T12:36:43","modified_gmt":"2025-03-16T12:36:43","slug":"sa-agricultural-industry-raises-concerns-if-agoa-benefits-are-lost","status":"publish","type":"post","link":"https:\/\/www.premium-partners.net\/fr\/builder\/sa-agricultural-industry-raises-concerns-if-agoa-benefits-are-lost\/","title":{"rendered":"SA agricultural industry raises concerns if AGOA benefits are lost"},"content":{"rendered":"

This post<\/a> was originally published on this site<\/a><\/p>

<\/p>\n

The Agricultural Business Chamber of South Africa (Agbiz) has expressed serious concerns regarding the nation’s potential removal from the African Growth and Opportunity Act (Agoa).<\/p>\n

The apprehension follows US President Donald Trump\u2019s decision last month to end USAID to South Africa, igniting fears of an impending economic setback.<\/p>\n

Wandile Sihlobo, chief economist of the Agbiz, on Thursday said the possibility of South Africa being expelled from Agoa would have <\/span>a<\/b> negative impact. <\/span><\/p>\n

\u201cTariffs could average around 3% on exports to the United States, which would significantly hurt South Africa\u2019s access to the American market, ultimately weakening its competitiveness,\u201d he said.<\/p>\n

Sihlobo added that there is  <\/span>growing<\/b> international pressure and uncertainty surrounding the country\u2019s trade relationship with the US. <\/span><\/p>\n

\u201cI remain hopeful that South Africa will still be part of Agoa when the agreement is up for renewal later this year,\u201d he said.<\/span><\/p>\n

\u201cThe US remains a vital role player for the country’s exports despite only accounting for <\/span>4 %<\/b>. The Agricultural Business Chamber of South Africa attributes this to the exports being concentrated to a few industries like citrus, grapes, wine and nuts.\u201d<\/span><\/p>\n

Further elucidating the potential ramifications, Waldo Krugell, an economics professor at North-West University, highlighted how the loss of tariff-free access to the US market would cause a decline in competitiveness among exports.<\/p>\n

\u201cWhile estimating the extent of this impact is challenging, any shift in tariffs will vary across industries. For instance, the automotive industry is particularly anxious, while sectors such as citrus may experience a lesser impact,\u201d he said.<\/p>\n

Krugell also noted the uncertainty surrounding Trump\u2019s potential implementation of reciprocal tariffs, exacerbating fears within various sectors.<\/p>\n

\u201cThe US tariff that we have to pay becomes whatever tariff we are levying on imports (and ours are generally higher). This will have a significant impact. But things can turn out differently if we are able to negotiate a new Free Trade Agreement with the US,\u201d he said.<\/span><\/p>\n

\u201cShould these tariffs take effect, they would hinge on whatever tariffs we currently impose, many of which are already higher. This may severely alter our trade landscape unless negotiations for a new Free Trade Agreement with the US materialise.\u201d <\/p>\n

The situation is further compounded by the perception within the US of South Africa\u2019s current political alignment.<\/p>\n

Professor Andr\u00e9 Thomashausen, a Wits University Professor Emeritus of International Law, said there exists a consensus among American officials that South Africa might be denied future Agoa benefits, largely due to perceived political discord.<\/p>\n

\u201cThe <\/span>extent<\/b> of this is difficult to determine. Up until now US tariffs have on average been low. If we have to start to pay them, the impact will differ by industry. The automotive industry is very worried, citrus a bit less,\u201d he said.<\/span><\/p>\n

Thomashausen added that if South Africa could afford to assist nations with struggling economies such as Cuba and lend credibility to groups like Hamas, then State support from the US may seem unnecessary.<\/p>\n

\u201cThen surely it does not need American dollars from the USA. With AGOA gone, South Africa will lose its main industrial manufacturing industry, the car assembly lines of the best known European and American brands. They will not and can not be “taken over” by Chinese automakers. In total, up to a million jobs will be lost, a very high price to pay for \u201cstruggle solidarity\u201d.<\/span><\/p>\n

Jaco Minnaar, president of Agri SA, noted that while only approximately 4% of South Africa\u2019s agricultural output was exported to the US under the Agoa framework, industries that are more dependent, such as citrus, wine, and fruit, would be severely affected.<\/p>\n

Although he expressed doubt that the expulsion from Ag would end exports altogether, he cautioned that potential import taxes could reduce profitability and lead to job losses in labour-intensive sectors.<\/p>\n

\u201cIn a time when job creation is imperative for our economy, we cannot afford such losses, particularly in the automotive sector where the implications could drastically change long-term development plans,\u201d Minnaar said.<\/p>\n

BUSINESS REPORT<\/strong><\/p>","protected":false},"excerpt":{"rendered":"

The Agricultural Business Chamber of South Africa (Agbiz) has\u00a0expressed serious concerns regarding the nation’s potential removal from the African Growth and Opportunity Act (Agoa).The apprehension follows US President Donald Trump\u2019s decision last month to end USAID to South Africa, igniting fears of an impending economic setback.Wandile Sihlobo, chief economist of the Agbiz, on Thursday said the possibility of South Africa being expelled from Agoa would have a negative impact.\u00a0\u201cTariffs could average around 3% on exports to the United States, which would significantly hurt South Africa\u2019s access to the American market, ultimately weakening its competitiveness,\u201d he said.Sihlobo added that there is\u00a0 growing international pressure and uncertainty surrounding the country\u2019s trade relationship with the US. \u201cI remain hopeful that South Africa will still be part of Agoa when the agreement is up for renewal later this year,\u201d he said. \u201cThe US remains a vital role player for the country’s exports despite only accounting for 4 %. The Agricultural Business Chamber of South Africa attributes this to the exports being concentrated to a few industries like citrus, grapes, wine and nuts.\u201dFurther elucidating the potential ramifications, Waldo Krugell, an economics professor at North-West University, highlighted how the loss of tariff-free access to the US market would cause a decline in competitiveness among exports.\u201cWhile estimating the extent of this impact is challenging, any shift in tariffs will vary across industries. For instance, the automotive industry is particularly anxious, while sectors such as citrus may experience a lesser impact,\u201d he said.Krugell also noted the uncertainty surrounding Trump\u2019s potential implementation of reciprocal tariffs, exacerbating fears within various sectors.\u201cThe US tariff that we have to pay becomes whatever tariff we are levying on imports (and ours are generally higher). This will have a significant impact. But things can turn out differently if we are able to negotiate a new Free Trade Agreement with the US,\u201d he said.\u201cShould these tariffs take effect, they would hinge on whatever tariffs we currently impose, many of which are already higher. This may severely alter our trade landscape unless negotiations for a new Free Trade Agreement with the US materialise.\u201d\u00a0The situation is further compounded by the perception within the US of South Africa\u2019s current political alignment.Professor Andr\u00e9 Thomashausen, a Wits University Professor Emeritus of International Law, said there exists a consensus among American officials that South Africa might be denied future Agoa benefits, largely due to perceived political discord.\u201cThe extent of this is difficult to determine. Up until now US tariffs have on average been low. If we have to start to pay them, the impact will differ by industry. The automotive industry is very worried, citrus a bit less,\u201d he said.Thomashausen added that if South Africa could afford to assist nations with struggling economies such as Cuba and lend credibility to groups like Hamas, then State support from the US may seem unnecessary.\u201cThen surely it does not need American dollars from the USA. With AGOA gone, South Africa will lose its main industrial manufacturing industry, the car assembly lines of the best known European and American brands. They will not and can not be “taken over” by Chinese automakers. In total, up to a million jobs will be lost, a very high price to pay for \u201cstruggle solidarity\u201d.Jaco Minnaar, president of Agri SA, noted that while only approximately 4% of South Africa\u2019s agricultural output was exported to the US under the Agoa framework, industries that are more dependent, such as citrus, wine, and fruit, would be severely affected.Although he expressed doubt that the expulsion from Ag would end exports altogether, he cautioned that potential import taxes could reduce profitability and lead to job losses in labour-intensive sectors.\u201cIn a time when job creation is imperative for our economy, we cannot afford such losses, particularly in the automotive sector where the implications could drastically change long-term development plans,\u201d Minnaar said.BUSINESS REPORT<\/p>","protected":false},"author":1,"featured_media":12647,"comment_status":"open","ping_status":"","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[1],"tags":[],"class_list":["post-12677","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-builder"],"_links":{"self":[{"href":"https:\/\/www.premium-partners.net\/fr\/wp-json\/wp\/v2\/posts\/12677","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.premium-partners.net\/fr\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.premium-partners.net\/fr\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.premium-partners.net\/fr\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/www.premium-partners.net\/fr\/wp-json\/wp\/v2\/comments?post=12677"}],"version-history":[{"count":1,"href":"https:\/\/www.premium-partners.net\/fr\/wp-json\/wp\/v2\/posts\/12677\/revisions"}],"predecessor-version":[{"id":12678,"href":"https:\/\/www.premium-partners.net\/fr\/wp-json\/wp\/v2\/posts\/12677\/revisions\/12678"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.premium-partners.net\/fr\/wp-json\/wp\/v2\/media\/12647"}],"wp:attachment":[{"href":"https:\/\/www.premium-partners.net\/fr\/wp-json\/wp\/v2\/media?parent=12677"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.premium-partners.net\/fr\/wp-json\/wp\/v2\/categories?post=12677"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.premium-partners.net\/fr\/wp-json\/wp\/v2\/tags?post=12677"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}