JOHANNESBURG - If South Africa is expelled from the African Growth and Opportunity Act (AGOA), the country could face significant setbacks.
Tariffs would average around 3% on exports to the United Sates will hurt South Africa’s access to the American market, further weakening its competitiveness.
This is according to Wandile Sihlobo from the Agricultural Business Chamber of South Africa.
He spoke amid growing international pressure and uncertainty surrounding the country’s trade relationship with the US.
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Despite the concerns, Sihlobo remains hopeful that South Africa will still be part of AGOA when the agreement is up for renewal later this year.
He says the US remains a vital role player for the country's exports despite only accounting for four-percent.
The Agricultural Business Chamber of South Africa attributes this to the exports being concentrated to a few industries like citrus, grapes, wine and nuts.