South African export farmers, especially citrus producers in the Western and Northern Cape, could face further pressure after the United States announced it wants to remove South Africa from the AGOA trade program from 1 January 2027.
The agricultural organisation AgriSA warns that the loss of preferential treatment could increase export costs for some products and could have consequences for workers, warehouses, transport companies and local suppliers.
President Donald Trump notified the United States Congress and the governments of South Africa and Rwanda on 2 November of his intention to terminate the two countries' participation in the African Growth and Opportunity Act (AGOA).
AGOA offers qualifying African countries preferential access to the United States market, including duty-free access for certain products.
Read also: Trump wants to end SA's Agoa trade benefits
US market remains open for South Africa despite AGOA decision
AgriSA emphasised in a statement on 3 November that the proposed loss of AGOA benefits does not mean a ban on South African agricultural products in the USA.
Exporters will still be able to sell to American customers, but will have to comply with applicable import duties and other import requirements. The additional costs will depend on the product in question and the duty levied on it.
According to the organisation, even a relatively small additional levy can make a difference where profit margins are small or competitors have more favourable access to the American market.
Western and Northern Cape citrus farmers
Although the USA receives a relatively small portion of South Africa's total agricultural exports, it is an important market for certain producers and regions.
AgriSA had before the latest announcement said the USA receives about five to six percent of South Africa's total citrus export volume. However, the market plays a larger role for certain citrus producers in the Western and Northern Cape.
The Citrus Growers' Association of Southern Africa (CGA) already warned in July 2025, during an earlier dispute over American import tariffs, that citrus is grown for specific markets and cannot simply be shifted to other countries.
Different countries have their own plant health requirements and product specifications. The association said at the time that a sudden shift of fruit to other markets could also put pressure on prices if there is too much supply.
In that statement, the CGA's chairman, Gerrit van der Merwe, who himself farms in Citrusdal, said the citrus industry is important to the economy of the area. He warned that pressure on producers could also affect farm workers, local businesses and community programmes. This comment was made about the 2025 tariff issue and not about the latest AGOA announcement.
USA gives reasons for decision
The office of the United States Trade Representative, Jamieson Greer, says the Trump administration is concerned about obstacles to American trade and investment in South Africa, corruption and matters that according to Washington threaten American national security and foreign policy interests.
The South African government says it has taken note of the 60-day notice and is working with affected industries to determine the consequences.
According to the Department of Trade, Industry and Competition South Africa has submitted proposals and additional concessions through the appropriate channels. The department says the USA is now raising new issues that did not form the basis of the negotiations that began in 2025.
Minister Parks Tau says the government will continue to support affected sectors and pursue trade and investment opportunities with the USA. The government says it is also working to expand South Africa's export markets.
AgriSA calls for further talks
AgriSA calls for continued diplomatic talks with the USA and clear, product-specific information so that exporters and their American customers can plan.
The organisation says South Africa should also continue to develop new markets, but warns that it takes time to establish the necessary approvals, distribution networks and demand in new destinations. Existing trade relationships with American customers therefore remain important.
The proposed exclusion takes effect on 1 January 2027, unless further talks lead to a different outcome.
This article is an automatic English translation of a Nuusflits article originally published in Afrikaans. Read the Afrikaans original.
