South Africa’s citrus growers have warned that jobs will be lost after the United States confirmed it plans to remove the country from the African Growth and Opportunity Act (Agoa).
The Office of the US Trade Representative confirmed late on Monday that South Africa and Rwanda will be removed from Agoa. The change will take effect on 1 January 2027, Moneyweb reported.
“This will be a loss not just for us, but the US consumer will lose too,” said Dr Boitshoko Ntshabele, CEO of the Citrus Growers’ Association of Southern Africa (CGA).
The CGA called the decision a “serious blow”. Ntshabele said South African fruit helps keep American shoppers supplied with citrus when US farms are out of season.
“Seasonal fresh produce does not threaten US jobs. It helps keep America healthy, and also helps contain food inflation,” he said.
According to the CGA, Agoa has been very important for growers in the Western Cape and Northern Cape. Many communities there depend on trade with the US.
CGA chair Gerrit van der Merwe said growers cannot simply send their fruit to other countries. He said each market has its own plant health rules and different consumer tastes.
“Entire orchards have been planted specifically for the US market. Our exclusion from Agoa will result in job losses in the Western and Northern Cape,” Van der Merwe said in a statement. He added that it was too early to say how many people would be affected.
Leaving Agoa does not mean South Africa loses access to the US market. Its exports will no longer enter duty free and will instead face the normal US tariffs charged to countries without a special trade deal.
The CGA said citrus exports will face a US duty of between 1.5 and 2.5 US cents per kilogram. The amount depends on the product and the time of year.
Mandarins, lemons and grapefruit also face an extra 12.5% Section 301 tariff. Oranges have been exempt from that tariff since November 2025, but they will now pay the normal US duty, the CGA said.
The association said this would put South African exporters far behind competitors such as Peru and Chile. Those countries have trade agreements with the US and shorter shipping times.
The CGA said jobs in the US are also at risk. “Thousands of people in the US are employed in importing, handling, distribution and retail because of South African citrus,” the association said.
Matthew Parks, parliamentary coordinator for the Congress of South African Trade Unions (Cosatu), told Moneyweb he has made many trips to the US to lobby for South Africa to stay in Agoa.
Parks said agriculture and manufacturing would be hit hardest. He said estimates range from about 3 000 to nearly 10 000 lost jobs, mostly in the Western Cape. He named fruit manufacturers in Atlantis as among those at risk.
Trade, Industry and Competition Minister Parks Tau has said South Africa’s economy will stay resilient after leaving Agoa. He said the country must strengthen existing trade ties and find new markets, especially in Africa.
Tau pointed to the African Continental Free Trade Area, which aims to cut tariffs between African countries. He said his department is also exploring trade deals with the European Union, Asia, Canada, India and the Middle East.
The US notice gives the South African government 60 days to submit its case against removal and ask the US to reverse the decision.
Source: this article is based on reporting by Moneyweb. Image: Moneyweb. Written with the help of AI and published by the Tzaneen Voice Business desk. See our Editorial Standards.
Anelisa Nkuna covers business and money news for Tzaneen Voice. Anelisa reports on the rand, fuel prices, interest rates, jobs, Eskom, Transnet, farming and company results. The aim is simple: explain what the numbers mean for household budgets, small businesses and workers in South Africa.