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04 Aug 2025
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Adapting to a new global trade reality: South Africa’s strategic response needed now | Aanpassing by ‘n nuwe globale handelswerklikheid: Suid-Afrika se Strategiese reaksie nou nodig

1 August 2025

Agri SA has expressed serious concern over the recent imposition of a 30% tariff by the United States on South African exports. This development underscores the urgent need for South Africa to adopt comprehensive and strategic measures to safeguard its agricultural sector and diversify export markets amid evolving global trade dynamics.

While the US market, under the African Growth and Opportunity Act (AGOA), accounts for approximately 4% of South Africa’s total agricultural exports (around US$488 million in 2024), the impact of the tariffs on key commodities such as citrus, macadamia nuts, grapes, wine, ostrich leather, seed, and other fresh produce could have far-reaching consequences across the entire value chain.

South Africa’s agriculture sector remains heavily export-dependent, with exports valued at US$13.7 billion in 2024, supporting millions of livelihoods and rural communities.

“As we have stated in the past, while calls for market diversification are valid, supply chains cannot be redirected overnight and will take time to materialise. This highlights the immediate severe impact on regions and producers who are heavily reliant on the US market, said Johann Kotzé, Agri SA’s Chief Executive Officer.

Strategic Response Measures

  1. Enhance trade agreements and diplomacy The Department of Trade, Industry, and Competition (DTIC), Department of Agriculture, and Department of International Relations and Cooperation (DIRCO) must urgently intensify efforts to negotiate exemption and quota arrangements with US authorities. Additional diplomatic resources and a pragmatic trade strategy are essential to mitigate immediate impacts.
  2. Address Tariff and non-tariff barriers South Africa must accelerate the development of comprehensive trade agreements, especially within the BRICS, ASEAN, and regional markets, to reduce tariff barriers and foster deeper economic integration. This will help South African products remain competitive globally.
  3. Diversify export markets Long-term strategies should focus on expanding South Africa’s presence in growing markets beyond traditional trading partners. Increased engagement with African nations, as well as ASEAN and BRICS economies, will reduce reliance on the US and mitigate geopolitical risks.
  4. Enhanced Negotiation Capacity South Africa’s current trade negotiation team must be expanded and strengthened with skilled technical experts who can scan the global economic environment, analyse emerging opportunities, and provide insights that inform strategic negotiations across sectors.
  5. Building Human Capital and Expertise Given the complex shift in the trade landscape, investment in senior negotiators and sector-specific agricultural technical specialists is critical. The country’s future competitiveness depends on having a well-resourced and knowledgeable team capable of navigating new trade realities.

Agri SA remains committed to collaborating with government, industry stakeholders, and international partners to navigate these challenges effectively. Proactive and coordinated efforts are essential to preserving the sustainability, competitiveness, and growth potential of South African agriculture.

Enquiries

Johann Kotzé, AgriSA CEO

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1 Augustus 2025

Agri SA het ernstige kommer uitgespreek oor die instelling van ‘n 30%-tarief deur die Verenigde State op Suid-Afrikaanse uitvoere. Hierdie beduidende ontwikkeling beklemtoon die dringende behoefte vir Suid-Afrika om omvattende en strategiese maatreëls te tref om sy landbousektor te beskerm en uitvoermarkte te diversifiseer te midde van veranderende globale handelsdinamika.

Terwyl die Amerikaanse mark, onder die Afrika-Groei- en Geleentheidswet (AGOA), ongeveer 4% van Suid-Afrika se totale landbou-uitvoere uitmaak (ongeveer US$488 miljoen in 2024), kan die impak van die tariewe op sleutelkommoditeite soos sitrus, makadamianeute, druiwe, wyn, volstruisleer, saad en ander vars produkte verreikende gevolge oor die hele waardeketting hê.

Suid-Afrika se landbousektor bly sterk afhanklik van uitvoere, met uitvoere ter waarde van US$13,7 miljard in 2024, wat miljoene lewensbestaan en landelike gemeenskappe ondersteun.

“Soos ons in die verlede gesê het, hoewel oproepe vir markdiversifikasie geldig is, kan voorsieningskettings nie oornag herlei word nie en sal dit tyd neem om te realiseer. Dit beklemtoon die onmiddellike ernstige impak op streke en produsente wat sterk afhanklik is van die Amerikaanse mark,” het Johann Kotzé, Agri SA se uitvoerende hoof, gesê.

Strategiese reaksiemaatreëls

  1. Verbeter handelsooreenkomste en diplomasie Die Departement van Handel, Nywerheid en Mededinging (DTIC), die Departement van Landbou en die Departement van Internasionale Betrekkinge en Samewerking (DIRCO) moet dringend pogings verskerp om vrystellings- en kwota-reëlings met die Amerikaanse owerhede te onderhandel. Bykomende diplomatieke hulpbronne en ‘n pragmatiese handelsstrategie is noodsaaklik om onmiddellike impakte te versag.
  2. Spreek tarief- en nie-tariefhindernisse aan Suid-Afrika moet die ontwikkeling van omvattende handelsooreenkomste versnel, veral binne die BRICS-, ASEAN- en streeksmarkte, om tariefhindernisse te verminder en dieper ekonomiese integrasie te bevorder. Dit sal Suid-Afrikaanse produkte help om wêreldwyd mededingend te bly.
  3. Diversifiseer uitvoermarkte Langtermynstrategieë moet fokus op die uitbreiding van Suid-Afrika se teenwoordigheid in groeiende markte buite tradisionele handelsvennote. Verhoogde betrokkenheid by Afrika-nasies, sowel as ASEAN en BRICS. ekonomieë, sal afhanklikheid van die VSA verminder en geopolitieke risiko’s verminder.
  1. Verbeterde onderhandelingskapasiteit Suid-Afrika se huidige handelsonderhandelingspan moet uitgebrei en versterk word met bekwame tegniese kundiges wat die globale ekonomiese omgewing kan skandeer, opkomende geleenthede kan analiseer en insigte kan verskaf wat strategiese onderhandelinge oor sektore heen kan inlig.
  1. Bou van menslike kapitaal en kundigheid Gegewe die komplekse verskuiwing in die handelslandskap, is belegging in senior onderhandelaars en sektorspesifieke landbou tegniese spesialiste van kritieke belang. Die land se toekomstige mededingendheid hang af van ‘n goed toegeruste en kundige span wat nuwe handelsrealiteite kan navigeer.

Agri SA bly verbind tot samewerking met die regering, belanghebbendes in die bedryf en internasionale vennote om hierdie uitdagings effektief te navigeer. Proaktiewe en gekoördineerde pogings is noodsaaklik om die volhoubaarheid, mededingendheid en groeipotensiaal van die Suid-Afrikaanse landbou te bewaar.

Navrae

Johann Kotzé, AgriSA HUB