COSATU calls for urgent govt intervention after SA removal from AGOA

The Congress of South African Trade Unions (COSATU) has urged the government to take immediate action following the United States' official removal of South Africa from the African Growth and Opportunity Act (AGOA) trade program, effective from January. COSATU claims that while trade relations with the US will persist, South African exporters will encounter higher costs as they will no longer be eligible for duty-free access under the agreement.

COSATU Parliamentary Coordinator Matthew Parks expressed particular concern for the agricultural sector and exporters in Western Cape, Limpopo, and Northern Cape, who are likely to face increased costs when accessing the US market. "We're particularly concerned about jobs in the agricultural sector, especially in the Western Cape, Limpopo, Northern Cape, where a lot of citrus farmers and other farmers export to the US.

We're also concerned about job losses, and we've seen some already over the past year and a half because of the fluctuation of tariffs from the US," Parks stated. Parks emphasized that the removal from AGOA does not completely bar exports to the US, but it does mean that South African products will be three and a half percent more expensive for US customers.