Agricultural and business organisations are at a crossroads after South Africa’s exclusion from the African Growth and Opportunity Act (Agoa), leaving exporters and farm workers facing uncertainty.

US president Donald Trump announced on Monday 2 November that South Africa will lose its Agoa eligibility from 1 January 2027, giving the South African government 60 days to respond before the termination takes effect.

Agoa is a duty-free trade agreement that provides eligible sub-Saharan African countries access to the US market for over 1 800 products, in addition to more than 5 000 products under the Generalised System of Preferences.

Exporters Western Cape (EWC), the Southern African Agri Initiative (Saai), South Africa Wine, and the Cape Chamber of Commerce and Industry have all issued statements in response to the US decision.

EWC has warned that the loss of preferential access will put further pressure on Western Cape exporters already facing declining sales to the US.

“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 EWC chairman Terry Gale.

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The organisation highlighted that thousands of jobs and billions of rand in provincial GDP are at risk, particularly in agriculture and maritime manufacturing. EWC urged government to work closely with affected industries, warning that market diversification is not an immediate solution and that clear guidance and support are needed to help exporters navigate the transition.

South Africa Wine echoed EWC’s concerns, calling the US announcement “another setback in an increasingly difficult market to compete in”.

The organisation called for urgent, high-level diplomatic engagement and a clear alternative trade proposal, warning that the cumulative effect of tariffs could see South African wine lose ground to international competitors in the US market.

The Cape Chamber of Commerce and Industry added that South Africa’s exclusion from Agoa will increase operational costs for Western Cape exporters and add friction to US–South African commercial relations.

The Chamber emphasised that while Agoa-eligible goods represent only a fraction of total bilateral trade, the loss of preferential access threatens jobs, supply chains, and regional competitiveness. It called for urgent government engagement with US authorities, clear guidance for affected businesses, and a renewed focus on strengthening local business competitiveness.

While most organisations focused on the economic fallout, Saai directly blamed government policy for the exclusion.

The group cited government foreign policy decisions and failure to address issues such as farm attacks and Black Economic Empowerment requirements as reasons for the US decision.

Saai estimates that around 62 000 jobs are now at risk, particularly among fruit, nut, and wine producers, and cautioned that the move will have severe consequences for farmers’ livelihoods. The organisation also argued that only a change in government approach would restore favourable trade relations with the United States.

All organisations urged the government to act swiftly to protect jobs and restore access to the US market, but uncertainty remains as the 60-day window for negotiations counts down.

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