Trade, Industry and Competition Minister Parks Tau / Gallo Images
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The National Economic Development and Labour Council (Nedlac) has considered measures to cushion South African businesses and workers from the impact of losing preferential access to the US market, as labour federation Cosatu warns that the country would probably be excluded from the African Growth and Opportunity Act (Agoa).
The contingency measures were discussed at a formal meeting between Trade, Industry and Competition Minister Parks Tau and Nedlac members on October 29, as the government awaited the outcome of the US review of South Africa’s eligibility for Agoa benefits in 2027. The US is expected to announce its decision on Monday, November 2.
Cosatu parliamentary coordinator Matthew Parks said the discussions examined different scenarios facing South Africa and the interventions that could be considered if the US decided to remove the country from the programme.
Summary
Nedlac and Trade Minister Parks Tau discussed contingency measures to help South African businesses and workers potentially losing preferential access to the US market under the African Growth and Opportunity Act (Agoa), with the US decision expected on November 2.
Labour federation Cosatu warned South Africa would probably be excluded from Agoa, emphasizing targeted assistance like tax relief for companies and workers most affected, particularly in the Western Cape and Northern Cape agriculture sectors.
South Africa faces regional risks due to interconnected supply chains, especially in the automotive sector, involving countries such as Lesotho and Botswana, and the government is pursuing diplomatic efforts to retain Agoa access.
Cosatu criticized the lack of trade attachés in South African embassies worldwide, advocating for closer embassy cooperation with trade and agriculture departments to boost export promotion and market access.
Discussions included diversifying trade relations with Asian markets like Vietnam, South Korea, and China, and reviewing domestic policies like black economic empowerment without compromising transformation goals.