SA seeks new markets as US tariffs threaten agricultural exports, says Steenhuisen

Agriculture Minister John Steenhuisen has expressed grave concerns regarding the potential effects of US tariffs on South African exports, particularly in light of the looming implications of the African Growth and Opportunity Act (AGOA).

Steenhuisen said his department was looking at existing trading agreements with other countries to widen market access for South Africa’s products should South Africa no longer be part of AGOA.

“What we are doing is taking existing agreements that we have with other partners like the European Union, Japan, China, and many others, and looking at how we can deepen and widen access.

“We are really taking full advantage of the full variety of goods that are there as some of the products that would probably see some curtailment in the United States market, and find other markets for those products,” Steenhuisen said.

He made the statement when he was answering questions in the National Assembly on Thursday after the US imposed tariffs on South African exports.

Steenhuisen also said the tariffs were a serious threat on the horizon to the country’s agricultural sector.

“I think that we do need to start building resilience in the agricultural sector in a post-AGOA world.”

He also said should South Africa lose benefits derived from the agreement with the US, it would have a devastating effect on our agricultural industry.

“Our export to the United States accounts for around about 6% of our international market access but has obviously some very particular and important aspects, particularly when it relates to citrus, wine, nut products, and nuts as well. That is a huge problem if we were to lose duty-free access,” the minister added.

However, Steenhuisen said his department was seeking to continuously strengthen its relation with the United States Department of Agriculture by holding regular discussions on a variety of matters relating to both maintaining and existing market access conditions between the two countries.

“The department has also prioritised the relationship by appointing an agricultural attaché in Washington, the first in many years, to signal that we take our reciprocal arrangement with agriculture particularly seriously,” he said.

Steenhuisen observed that AGOA allowed South Africa duty-free access, which allowed exporting several agricultural products to the US and without that access, South Africa would struggle with tariffs.

“We have already seen new tariffs being announced and I think that can probably safely work on the fact that AGOA will not be in place for us later this year. I think that we need to hope for the best but prepare for the worst. That is why the department is actively seeking out new markets for those particular goods, particularly citrus, wine, nuts, and several other agricultural products in new markets such as Japan, Vietnam, Thailand, and a variety of other places so that we can reduce any shock should AGOA not be renewed later this year.”

Asked whether he believed AfriForum and Solidarity's controversial visit to the US was meant to prevent the end of AGOA, Steenhuisen said as a member of the government, it was not his role to comment otherwise on the motives or tactics of other organisations. 

“I will, however, say that I do think that it is deeply unfortunate that there are decisions being made at a very high level in Washington that are based on an incorrect version of what is truly happening in South Africa.

“And I think that that is most unfortunate. I think we need to make sure that when decisions are being made, particularly when it comes to things like trade, that those decisions are made with the full facts in front of them.”

When ActionSA parliamentary leader Athol Trollip suggested AfriForum’s visit to the US peddling misinformation probably had some harm and militates against the extension of AGOA and asked the outcome of DA’s visit to Washington, Steenhuisen said he never accused AfriForum of any of the things.

“I'm here as a minister of government, not as the leader of the DA, and I'm answering that as a question. So if you would like me to answer that political question of AfriForum party, I'm more than happy to do so, but I hardly think this is the environment.”

mayibongwe.maqhina@inl.co.za