Business Report

COSATU urges unity as racial rhetoric threatens South Africa’s AGOA trade benefits

Thabo Makwakwa|Published

Strengthening South Africa's economy: COSATU's call for unity and responsible discourse

Image: Armand Hough/Independent Media

The Congress of South African Trade Unions (COSATU) has issued a strong call for organisations across the country to tone down on divisive and destructive rhetoric that fuels racial tensions. 

The organisation stressed the importance of unity as South Africa seeks to renew the African Growth and Opportunities Act (AGOA) with the United States.

In a statement released on Friday, COSATU's parliamentary coordinator, Mathews Parks, highlighted the potential consequences of inflammatory discourse, warning that "the malicious decampaigning of South Africa in the US will come at a real cost to all South Africans, particularly Afrikaans farmers and workers."

COSATU’s call comes amid the US’ annual review of AGOA member eligibility, a critical process determining whether South Africa and other nations will retain preferential trade benefits. 

Parks expressed the federation’s support for renewing AGOA before its expiry at the end of September, highlighting its significance for South Africa’s economy.

“AGOA has been an important stimulant for key jobs and revenue-rich sectors such as mining, agriculture, motor manufacturing, and more,” Parks said. 

“It has facilitated trade and investment between the US and South Africa, with over 600 American companies invested here and 500,000 South African jobs linked to US trade. It’s a framework that benefits both nations and the continent.”

He further noted that South African vehicle exports, including components like steering racks from Tunisia and rubber from Côte d'Ivoire, demonstrate the interconnectedness of regional trade, which AGOA has helped to facilitate. 

Parks stated the importance of a mutually beneficial trade agreement, highlighting opportunities for expanding product inclusion, supporting emerging sectors, and strengthening cooperation on the African Continental Free Trade Area (AfCFTA).

COSATU expressed the positive reception of its proposals in Washington and lauded the solidarity shared with American labor movements, especially the AFL-CIO. 

The federation pledged to continue working closely with the South African government, business sectors, and US counterparts to deepen bilateral relations—while respecting sovereignty and promoting sustainable economic growth.

“Progress under President Cyril Ramaphosa’s leadership to reset bilateral relations is encouraging,” Parks stated. 

“However, it is vital that all parties support these efforts and refrain from inflammatory language that undermines social cohesion.”

The federation strongly urged organisations such as AfriForum, NEASA, Sakeliga, and the Freedom Front Plus to prioritise national unity over partisan point-scoring. 

“Whilst social media clicks may entertain friends over a braai, the malicious decampaigning of South Africa in the US will come at a real cost to all South Africans, in particular Afrikaans farmers and workers.”

Parks stated that legitimate grievances should be addressed through constitutional and legal channels like Parliament, the judiciary, or law enforcement, rather than through rhetoric that incites racial divisions.

“Now is the time to shed narrow racial interests and place the nation's needs first,” he asserted. “Partisanship has its place during elections, but the current climate demands maturity and responsibility from all stakeholders.

Meanwhile, In a letter dated February 11, 2025 Republican congressmen Andrew Ogles, Tom Tiffany, Joe Wilson and Don Bacon asked President Donald Trump to revoke South Africa’s access to the US market through AGOA and diplomatic relations alleging that South Africa had a vendetta against Israel, allegedly committing human rights violations and was friendly with China’s Community Party.

thabo.makwakwa@inl.co.za

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