MEDIA STATEMENT
FOR IMMEDIATE RELEASE | 3 NOVEMBER 2026
FEDUSA CALLS FOR URGENT WORKER PROTECTION MEASURES FOLLOWING US AGOA ANNOUNCEMENT
The Federation of Unions of South Africa (FEDUSA) is deeply concerned by the United States government’s announcement of its intention to suspend South Africa’s preferential trade benefits under the African Growth and Opportunity Act (AGOA), effective 1 January 2027.
While acknowledging government’s efforts to engage constructively with the United States and prepare for different possible outcomes, FEDUSA emphasises that the immediate priority must be protecting jobs, safeguarding workers’ livelihoods and preserving South Africa’s productive industrial capacity.
In his statement of 29 October 2026, the Minister of Trade, Industry and Competition, Mr Parks Tau, outlined government’s ongoing negotiations with the United States and various support mechanisms for affected businesses, including export assistance programmes, industrial development initiatives and the consideration of UIF interventions to protect employment.
FEDUSA welcomes these efforts but stresses that the effectiveness of these interventions will ultimately be measured by their ability to protect jobs and support workers.
Workers must not bear the cost of international trade and diplomatic tensions.
Although AGOA-related exports accounted for approximately $1.7 billion in 2025, representing around 1% of South Africa’s total global exports, the potential impact on particular industries and their employees should not be underestimated.
Automotive manufacturing and retail, agricultural processing, food processing, textiles, clothing, footwear, leather, and associated logistics and supply chains could experience increased pressure on production, investment and employment. Workers, particularly seasonal agricultural workers and those employed in export-dependent industries, may face reduced working hours, income insecurity and potential retrenchments.
At a time when South Africa continues to grapple with high unemployment, poverty and inequality, further pressure on employment and industrial capacity must be avoided.
FEDUSA therefore calls for four urgent interventions:
1. A comprehensive employment impact assessment: Government must establish the direct and indirect jobs potentially affected, identifying vulnerable sectors, provinces and communities.
2. Immediate implementation of worker protection measures: The Department of Employment and Labour must clarify the UIF mechanisms and other support measures available to qualifying workers facing reduced working hours or potential job losses.
3. A strengthened job preservation strategy: Government support to affected businesses must be linked to employment retention, skills preservation and the protection of workers’ rights. Employers must not use the AGOA uncertainty to justify opportunistic retrenchments or undermine collective bargaining agreements.
4. Continued social dialogue and trade diversification: Government, organised labour and business must sustain engagement through Nedlac, monitor the implementation of support measures and accelerate efforts to diversify export markets while strengthening domestic manufacturing and industrial development.
FEDUSA further urges government to continue diplomatic engagement with the United States, clarify the implications of the announced 60-day notification period and pursue all available avenues to resolve outstanding trade concerns.
The Federation believes that South Africa’s economic resilience must be measured not only by its ability to secure alternative trading partners, but also by its capacity to protect jobs, sustain industries and create decent and sustainable employment.
FEDUSA stands ready to work with government, business and other social partners to ensure that workers remain central to the national response.
The protection of workers’ jobs, dignity and livelihoods must not be an afterthought. It must be a national priority.
ENDS
FOR MEDIA ENQUIRIES:
Betty Moleya
FEDUSA Media and Communications
063 736 5533
FOR INTERVIEW REQUESTS:
Riefdah Ajam
FEDUSA General Secretary
079 696 2625
Ashley Benjamin
FEDUSA Deputy General Secretary
083 258 4433