TLU SA Limpopo supports TLU SA’s national statement regarding the US government’s decision to terminate South Africa’s preferential access under the African Growth and Opportunity Act (Agoa). The announced termination, effective from 1 January 2027, poses serious risks to agricultural businesses, employment and rural communities.
TLU SA Limpopo shares the national organisation’s concern that the ANC government’s policy choices and handling of international relations are undermining South Africa’s economic interests. Producers, employees and businesses should not have to bear the cost of political decisions over which they have no control. The government must be held accountable for the consequences of its actions and urgently work towards restoring this important trade relationship.
The impact could extend beyond export farms
In Limpopo, the exposure of industries such as fruit, nut and processing operations must be carefully assessed. The extent to which businesses will be affected will depend on their actual exports to the US, the tariff treatment of the products concerned and their ability to serve other profitable markets.
It would be incorrect to assume that all Limpopo producers export directly to the US or will experience the same losses. However, the potential indirect consequences deserve equal attention.
When export orders decline or returns weaken, the effects can filter through to packhouses, cold storage facilities, processors, transport companies and input suppliers. Reduced activity could place seasonal employment and the incomes of households and local businesses under pressure.
Producers who sell mainly into the domestic market or to other destinations could also be affected if export products are redirected to the same markets. Increased supply could put pressure on prices and profit margins.
Urgent action is needed
TLU SA Limpopo supports the national call for existing trade relations to be restored while alternative export markets are developed. New markets require approvals, reliable buyers and viable logistics. They cannot replace established trade relationships overnight.
The organisation calls on the government to:
- Urgently and practically address the issues undermining the trade relationship with the US.
- Work with agricultural and commodity organisations to determine the actual exposure of producers, businesses and workers.
- Accelerate access to alternative markets and export approvals.
- Improve transport, port performance and export administration to limit avoidable costs.
Producers are encouraged to consult their exporters, processors and marketing agents about confirmed orders, applicable tariffs, the allocation of costs and alternative markets. Cash flow and contracts should be reviewed well in advance.
TLU SA Limpopo emphasises that government decisions must be measured against their consequences for food production, employment, investment and the viability of rural communities. Protecting these economic interests requires tangible action now.
