EWC warns diplomatic standoff puts export jobs at risk
Exporters Western Cape (EWC) has called for urgent intervention at the highest level to halt the deterioration in relations between South Africa and the United States, warning that exporters cannot afford further damage to a major trading relationship.
EWC chairman Terry Gale said the escalating public exchanges between International Relations and Cooperation Minister Ronald Lamola and US Ambassador Brent Bozell III were deepening uncertainty at a time when businesses needed a clear path forward.
“This standoff carries an economic cost. While the diplomatic confrontation continues, exporters face uncertainty over a market they have spent years developing. Government must give this relationship the urgent attention it deserves. The livelihoods that
depend on it cannot be an afterthought,” said Gale.
Relations have become increasingly strained over disagreements concerning South Africa’s land reform and broad-based black economic empowerment policies. Washington’s announcement of targeted visa restrictions in September added to the confrontation, with
Pretoria rejecting the US characterisation of its domestic policies.
For Western Cape exporters, the dispute comes against an already difficult trading environment.
Exports from the province to the US fell from approximately R17.31 billion in 2024 to R14.51 billion in 2025 – a decline of 16.2%, representing about R2.8 billion in lost export value. Recent provincial reporting shows that the US dropped from the Western
Cape’s second-largest to fourth-largest export market.
“These figures should serve as a warning. Exporters spend years building a foothold in the US market. Continued uncertainty puts that work at risk and makes it harder to retain customers. Once a buyer moves to another supplier, winning that business back
is no simple matter,” said Gale.
He said both governments needed to move beyond public confrontation and pursue negotiations that would protect the trading relationship.
“Neither country has to agree on every policy to recognise the value of doing business with the other. But allowing disagreements to deepen without a workable resolution puts commercial relationships in jeopardy. We need direct engagement at the highest
level, backed by a clear commitment to resolving the outstanding issues.”
Gale said entering new markets remained essential, but should not become an excuse for accepting the erosion of established trade.
“Diversification takes time. Exporters cannot simply replace the US market overnight. South Africa needs to defend the business it already has while pursuing new opportunities. Further deterioration must not be treated as inevitable.”
