Steenhuisen to farmers: prepare for life without duty-free access to US

Agriculture minister John Steenhuisen says the local agriculture industry must prepare to compete in the global economy without duty-free access to the US market for exports.

This comes as the US government has imposed tariffs on South Africa, which Steenhuisen described as unfortunate and driven by misinformation.

Steenhuisen was responding to questions from MPs in the National Assembly on Thursday afternoon as part of the cabinet’s economic cluster oral question and answer sessions.

His remarks come as US President Donald Trump's administration has imposed a sweeping 25% tariff on all foreign vehicle and car part imports into the US and a 30% reciprocal tariff on South Africa.

Steenhuisen acknowledged that the US was a strategically important trade partner for South Africa and that his department was working hard to keep the relationship intact.

“The department of agriculture seeks to continuously strengthen its relationship with the US department of agriculture by holding regular discussion on a variety of matters relating to maintaining existing market access conditions between the two countries,” he said.

He said his department prioritised this by appointing an agricultural attaché to the US for the first time in many years. Steenhuisen said he planned to engage with his US counterpart, Brooke Rollins, in due course.

He said while the American Growth and Opportunity Act (Agoa) provided African goods with tariff-free access to the US market, it was unlikely that the act would be extended beyond its expiration in September or that South Africa would be allowed to continue participating in it if it is extended.

“Without that access we will obviously struggle with tariffs, and we have already seen new tariffs being announced. I think we 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 and plan for the worst.”

He said the department was actively looking for new buyers of products such as wine, citrus and nuts in markets such as Japan, Taiwan, Vietnam and others to reduce the impact if Agoa is not renewed or if South Africa’s participation in an extended Agoa is terminated.

DA MP Willie Aucamp asked Steenhuisen what specific steps his department was taking to open South African agricultural products up to new markets.

“Exports to the US account for 6% of global market access. It’s a huge problem to lose duty-free access, but the department is looking at existing trade agreements with other markets such as the EU, Japan and China and looking to deepen those deals to send the product meant for the US to those markets.

“I don’t want to underplay it. I think that it is a serious threat that is on the horizon to our agricultural sector. But I think that we do need to start building resilience in the agriculture sector in a post-Agoa world,” Steenhuisen replied.

Asked if he believed that the visit of AfriForum to the US sought to prevent the end of Agoa, Steenhuisen walked a delicate line, addressing the role of what he called misinformation behind the US’s ongoing rift with South Africa.

“As a member of the government, it’s not my role to comment on the tactics of other organisations. But it is deeply unfortunate that decisions are being made in Washington based on an incorrect version of what is happening in South Africa. Decisions must be made with the facts in mind.”

Action SA MP Athol Trollip asked Steenhuisen what the outcome of the DA’s visit to Washington regarding Agoa was and how the party could call the visit a success if Trump had introduced at least two new tariffs on South Africa since the visit. He asked the minister if he believed that AfriForum's recent visit to the US worsened the rift. 

Steenhuisen said organisations are free to travel the world and lobby, but when they do, they must ensure that international partners have a full understanding of South Africa and its challenges, free of misinformation.

“I’m not sure if the honourable Trollip was not listening correctly. I’ve never accused AfriForum of any of the things that you’ve said I’ve done. Quite the opposite. I said that they’re allowed to go and share their perception.

“The thing is, I’m here as a minister of government, not as the leader of the DA and I am answering that as a question. So, if you would like me to answer that political question on behalf of my party, I’m more than happy to do so, but I hardly think that this is the environment to do so,” Steenhuisen said.

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