Urgent diplomatic intervention is needed to protect South Africa’s preferential access to the US market as exporters face declining sales and uncertainty over their continued eligibility for the African Growth and Opportunity Act (AGOA).
Exporters Western Cape CEO Terry Gale has appealed to President Cyril Ramaphosa to prioritise the trade relationship, warning that losing AGOA benefits would add to pressure on businesses and employment.
In an open letter to the president, Gale cited figures showing that Western Cape exports to the US had fallen by 41%, from R16.89 billion in the 12 months from August 2024 to July 2025 to R10.02bn between August 2025 and July 2026.
The uncertainty came as exporters contended with tariffs and increasing competition in international markets, he said.
“We need urgent, constructive diplomatic engagement.”
According to the figures cited in his letter, fruit juice export values fell by 86%, from R953 million to R137m, while grape exports declined by 79%, from R444m to R91m.
Yacht exports dropped by 55%, from R1.4bn to R628m; wine by 38%, from R603m to R371m; and citrus by 17%, from R2.19bn to R1.82bn.
Gale warned that replacing the US with alternative export markets would not be straightforward, pointing to the difficulties of accessing markets such as China, India and Brazil.
“It is easy to say that we should replace the US with other export markets; however, it is not that easy, as we have noticed when trading with our BRICS partners.”
He said losing AGOA eligibility would further undermine exporters and place additional strain on the economy.
While acknowledging that relations between Pretoria and Washington involved issues beyond commerce, Gale urged the government to pursue every available avenue to resolve the impasse.
“We urge government to make protecting South Africa’s trade relationship with Washington an economic priority and to pursue every available avenue to resolve the current impasse.”
