South Africa’s impending loss of African Growth and Opportunity Act (AGOA) preferences will put further pressure on Western Cape exporters already facing a sharp decline in sales to the United States, says Exporters Western Cape (EWC).
Following President Donald Trump’s notification on Monday of his intention to terminate South Africa’s eligibility from 1 January 2027, EWC chairman Terry Gale said the focus must now shift to helping affected businesses retain their American customers.
“The time to do anything about this has passed. This is going to have a negative impact on our exporters and South Africa can ill afford it. Our economy needs every export market and every job it can hold on to,” said Gale.
The Western Cape’s exposure extends well beyond individual exporters. The province’s exports to the US support about R12.98 billion in provincial GDP, 11 914 direct jobs and 35 467 indirect jobs. Any further loss of orders puts those jobs at risk.
Exporters were already under severe strain. The value of Western Cape exports to the US fell 41%, from R16.89 billion between August 2024 and July 2025 to R10.02 billion between August 2025 and July 2026. Fruit juice exports fell 86%, from R952.9 million to R136.7 million, while grape exports declined 79%, from R444.2 million to R91.1 million. Yacht exports dropped 55%, from R1.4 billion to R627.6 million. Wine exports fell 38%, from R603.1 million to R371.5 million, while citrus declined 17%, from R2.19 billion to R1.82 billion.
Losing AGOA preferences would make an already difficult position worse, said Gale. The programme has provided eligible African countries with preferential access to the US market since 2000 and its loss will raise the cost of doing business with American customers.
He said the effect would vary between products, but the concern extended beyond the immediate cost to the trading relationships exporters had built.
“We can’t afford to see our trading relationships weakened, least of all with the US. Businesses have spent years building relationships with American customers and investing in the capacity to supply them. Losing preferential access puts those investments under pressure.
“Government needs to work with affected industries to establish where the greatest exposure lies and how businesses can be helped to retain their customers. Exporters need to understand what this means for their products while they still have time to discuss arrangements with their buyers.”
The United States Trade Representative said on Monday that the intended termination followed the annual review of AGOA eligibility. Its statement said South Africa’s practices were inconsistent with AGOA’s eligibility criteria, citing barriers to US trade and investment, corruption and threats to US national security and foreign policy interests.
EWC said clear guidance would be essential for businesses negotiating orders extending into 2027. The implications for pricing could affect whether an exporter remained competitive or had to absorb additional costs to keep a customer.
Gale said developing alternative markets remained essential, but cautioned against presenting diversification as an immediate solution.
“Finding another market is not something an exporter can do overnight. Building relationships with new buyers takes time. There may also be regulatory requirements that cannot be met immediately, particularly by smaller businesses with limited resources.
“We should pursue new opportunities with urgency while working to retain our American customers. We cannot afford to write off established trading relationships simply because the terms of access are becoming more difficult.”
He said the announcement made it even more urgent to address domestic constraints that increased the cost of exporting.
“Government cannot ask exporters to compete under more difficult trading conditions while accepting avoidable costs and delays at home. Every unnecessary expense makes it harder for a South African supplier to hold on to an order. Improving the reliability of our logistics system is one area where we can make a meaningful difference.
“Businesses need to know what changes from January and what support will be available. The priority must be to help them continue trading, because lost orders ultimately put jobs at risk.”
About Exporters Western Cape
Exporters Western Cape is a non-profit organisation established in 1979 to support and promote active, sustainable exporting in the Western Cape.
The organisation provides a trusted platform for exporters and stakeholders across the trade ecosystem to connect, share knowledge and engage on key issues affecting export growth. Through a programme of informative and interactive networking events, Exporters Western Cape facilitates dialogue between business, government and trade associations, while signposting both new and established exporters to relevant expertise, insights and market opportunities.
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Contact: Terry Gale
Cell phone: 082 436 0751
Email: terry@ewc.org.za
Website: www.ewc.org.za
