Cosatu is worried about the recent tensions between the US government and South Africa due to South Africa’s high unemployment rate, sluggish economic growth, and the need to attract investment.
Cosatu warned on Friday that US President Donald Trump’s announcement of impending tariffs on South African and other nations’ exports poses a threat to thousands of South African jobs.
This could affect jobs across sectors including agriculture, mining, jewellery, chemicals, automotive, clothing, and manufacturing.
With an unemployment rate of 41.9%, the country cannot afford further job losses, the union said in a statement on Friday.
“We are seeking clarity from the US government on the impact of this executive order on the African Growth and Opportunity Act (Agoa), which has granted tariff-free access to the US market for much of the African continent, including South Africa. It is crucial that the US government engages with South Africa’s government to ensure that the upcoming review of country eligibility and tariffs is based on facts and takes into account the severe socio-economic and developmental challenges facing both South Africa and the broader continent. Agoa and its renewal should be leveraged to support our economic development and regional integration,” Cosatu stated.
Agoa benefits
South Africa is one of currently 35 Sub- Saharan African countries that benefit from preferential access to the United States market under the Agoa, which grants roughly 7 000 products duty-free status.
The agriculture sector is a major benefaciary of trade between the two countries through the Agoa. According to trade map data, South Africa's agricultural exports to the US accounted for at least 4% of the country's $13.2bn (R244bn) total agricultural exports in 2023.
As a result of the Agoa, South Africa’s automotive-related exports to the US have surged from $151 million (R2.8 billion) in 2000 to $1.6bn in 2022. Parts and accessories alone accounted for $62m in 2022, IOL reported.
The US was South Africa’s sixth biggest export destination for fully built up vehicles in 2023, with 19 590 vehicles shipped abroad, accounting for 5% of automotive exports.
HIV/AIDS funding
Cosatu also expressed concern over the freeze on aid to South Africa and other countries by the US government, highlighting the potential negative effects on South Africans living with HIV/AIDS.
“It is vital that the South African government ensures these programmes continue, and that alternative funding sources are found, including the insourcing of all community health workers as per a recent court ruling secured by our affiliate, Nehawu (National Education, Health and Allied Workers' Union),” the union said.
Protecting constitutional democracy and sovereignty
Cosatu further voiced worries about the recent tensions between the US government and South Africa due to South Africa’s high unemployment rate, sluggish economic growth, and the need to attract investment. US investments and South African exports to the US support 500 000 South African jobs and account for 10% of the country’s exports.
"We have full confidence in government led by President Cyril Ramaphosa’s steady and sober leadership during these turbulent geo-political tensions. Whilst South Africa must aggressively seek to attract investment and boost trade, we must simultaneously safeguard our constitutional democracy and sovereignty,“ it said while reiterating its unwavering support for Ramaphosa and the government in defending South Africa’s values and transformation goals.
“No country can dictate the path of the South African people. We are a robust and vocal democracy, and we will not tolerate any attempts to intimidate us. South Africa’s values, which are reflected in our foreign policy, are based on principles of peace and justice, solidarity and development, non-alignment, and African unity. Having suffered the painful scars of apartheid, colonialism, and genocide, we stand in solidarity with all nations facing such oppression, including the Palestinian people.”
The labour union also said it continued to support the government’s efforts to build strong relationships with nations globally, coupled with an increased focus on boosting exports and diversifying trade, particularly within Southern Africa and the broader African continent, where South Africa’s future lies.
Over the past three years, Cosatu said it has worked closely with the government and organised business to navigate the complexities of relations with the US. This has included engaging with the AFL-CIO, as well as with both Republican and Democrat lawmakers in the US Congress and the business community. “We will continue to play our part in supporting the government’s efforts in this regard,” it said.
The labour union welcomed the sense of unity displayed by the overwhelming majority of South Africans across the political spectrum during this challenging period. It condemned fringe right-wing elements peddling shameful lies for publicity and fundraising purposes, stressing that history would judge them harshly. Cosatu also called for action against those spreading hate speech on social media, in accordance with the Prevention and Combating of Hate Speech and Crimes Act.
Cosatu welcomed the President’s call for a National Dialogue in his 2024 State of the Nation Address, recognising the crucial role such a dialogue must play in addressing the lingering scars and divisions within South African society.
“It is clear that the wounds of the past have not healed, and will not heal, until the injustices of the past and the inequalities of today are addressed,” the statement said.
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