Without African Growth and Opportunity Act (AGOA), South African (SA) exporters would be hit with an additional 3% tariff on top of existing duties, severely eroding the country’s competitiveness in the American market, warns Agricultural Business Chamber Chief Economist Wandile Sihlobo.
Sihlobo’s warning comes after the United States (US) Senate agreed to extend the landmark trade preference programme for two years, keeping it in place until the end of 2028. However, the legislation still awaits final approval and signature from US President Donald Trump.
Maintaining AGOA status is vital for keeping local producers on a par with international rivals exporting to the US.
“A renewal of AGOA would be important because, without it, there would be an additional 3% tariff on top of the 12.5% tariff that SA already faces in the US,” Sihlobo explained. “That would have placed SA in a non-competitive environment. So, continuing to be part of AGOA places SA on an equal footing with competing countries that are also exporting various products to the US. This is a positive step from our perspective.”
–ChannelAfrica–
