The Congress of South African Trade Unions (Cosatu) has called on the government to intensify negotiations with the US to preserve a preferential trade agreement that could be terminated, potentially resulting in significant job losses. The African Growth and Opportunity Act (AGOA) allows several African countries to export products to the US without tariffs. Cosatu warned that a collapse of the deal could lead to 3,000 to 10,000 job losses in the agricultural and manufacturing sectors.
The US announced its intention to exclude South Africa and Rwanda from AGOA, sparking concerns in South Africa. Cosatu has urged the government to engage in urgent discussions with Washington to maintain access to the US market. According to Matthew Parks, Cosatu's parliamentary coordinator, the decision could have severe consequences for small towns in the Western Cape, particularly those reliant on the citrus industry.
The potential collapse of the trade deal has significant implications for South Africa's economy. In 2025, around 10% of South Africa's exports to the US benefited from the AGOA agreement, according to Trade Minister Parks Tau. Cosatu is demanding urgent measures to support workers, businesses, and communities that would be most affected by the deal's termination.
Cosatu also emphasized that the US has economic interests to protect in the trade relationship. Washington is keen to continue importing critical minerals from South Africa. The union believes that negotiations should highlight the potential consequences of a trade rupture on US economic interests, as well as those of South Africa.
The South African government has two months to negotiate a compromise with the US. Cosatu is calling for a solution that would avoid an economic and social shock. The union's demands include measures to support workers and businesses that would be impacted by the deal's collapse.
The AGOA agreement has been a significant benefit to South Africa's economy, and its termination could have far-reaching consequences. The US is a crucial market for South African exports, and a collapse of the deal could lead to significant job losses and economic instability.
The South African government is under pressure to secure a new agreement with the US. The country's ambassador to the US was summoned for the third time in nine months to discuss the issue. The government must navigate complex trade negotiations to protect the country's economic interests and prevent significant job losses.
Key points
- 3,000 to 10,000 job losses possible if US trade deal collapses
- Cosatu urges government to negotiate with US to preserve AGOA agreement
- US has economic interests to protect in trade relationship with South Africa
