A leading business organisation has called on government to urgently repair relations with the United States, warning that thousands of export-linked jobs in the Western Cape are at risk as the diplomatic standoff deepens.
Exporters Western Cape (EWC) says the public war of words between International Relations and Cooperation Minister Ronald Lamola and US Ambassador Brent Bozell III is creating uncertainty that exporters cannot afford.
Terry Gale, chairman of EWC, said the organisation wants both governments to move beyond public confrontation and start negotiations that protect the trading relationship.
“This standoff carries an economic cost. While the diplomatic confrontation continues, exporters face uncertainty over a market they have spent years developing. Government must give this relationship the urgent attention it deserves. The livelihoods that depend on it cannot be an afterthought,” Gale said.
Export values drop 16%
Figures from the province show exports to the US fell from R17.31 billion in 2024 to R14.51 billion in 2025, a decline of 16.2%. The drop represents about R2.8 billion in lost export value.
Recent provincial reporting shows the US has slipped from the Western Cape’s second-largest to fourth-largest export market.
“These figures should serve as a warning. Exporters spend years building a foothold in the US market. Continued uncertainty puts that work at risk and makes it harder to retain customers. Once a buyer moves to another supplier, winning that business back is no simple matter,” Gale said.
Visa restrictions add pressure
Relations between Pretoria and Washington have become increasingly strained over disagreements about South Africa’s land reform and broad-based black economic empowerment policies.
Washington announced targeted visa restrictions in September, adding to the confrontation. Pretoria rejected the US characterisation of its domestic policies.
Gale said both governments needed to recognise the value of doing business with each other, even if they disagreed on policy matters.
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Diversification not quick fix
He said entering new markets remained essential but should not become an excuse for accepting the erosion of established trade.
“Diversification takes time. Exporters cannot simply replace the US market overnight. South Africa needs to defend the business it already has while pursuing new opportunities. Further deterioration must not be treated as inevitable,” Gale said.
The organisation has called for direct engagement at the highest level, backed by a clear commitment to resolving the outstanding issues.
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