The United States is moving to drop South Africa from the African Growth and Opportunity Act (AGOA), which would end the country’s duty-free access for certain industries.
In a statement, the US Trade Representative, Ambassador Jamieson Greer, announced President Donald Trump’s intention to terminate both South Africa and Rwanda from the trade programme, as of 1 January 2027.
He says based on a review, Trump found that the governments of these two countries are engaged in “practices that are inconsistent with AGOA’s eligibility criteria”.
These allegedly relate to pervasive practices which include barriers that undermine American trade and investment and pose a threat to US national security and foreign policy interests in the region.
However, the statement adds that the Trump administration is working to ensure its African partners take the necessary steps to meet the eligibility criteria.
Pretoria has also noted Washington’s intention to remove South Africa from AGOA. The Department of Trade, Industry and Competition (DTIC) says it’s unfortunate that the US has now raised new issues. It has also reaffirmed South Africa’s sovereignty.
Department of Trade, Industry and Competition stated that:
- Government recognises the concern that this decision may create for workers, exporters, businesses and communities linked to AGOA supported value chains.
- The impact will differ across sectors, and government is working closely with affected industries to assess the implications and will continue to provide appropriate support, on a company-to-company basis.
- Government will undertake further engagements with social partners to optimise the support measures aimed at improving resilience and sustainability of the productive sectors whilst diversifying exports and protecting jobs.
- Government has put extensive efforts into constructively responding to the US concerns and has tabled, beyond the 2015 concessions, additional concessions through the appropriate channels.
- These concessions respect due process, safeguard South Africa’s biosecurity and constitutional imperatives and its obligations under World Trade Organization rules.
- It is, however, unfortunate that the US is now raising new issues that have not been the basis for discussions as part of the negotiations process that commenced in 2025.
- AGOA remains important to South Africa, but it does not constitute the totality of the economic relationship between South Africa and the United States.
- In 2025, approximately 89% of South African exports to the United States entered under ordinary World Trade Organization most-favoured-nation terms, while approximately 10% entered under AGOA, down from 28% in 2024.
- AGOA exports were valued at approximately US$1.7 billion in 2025, down from $4 billion in 2024.
- AGOA exports represented about 1% of South Africa’s total global exports.
- Government will continue to accelerate the diversification of South Africa’s export markets.
- New market opportunities have also been secured for South African citrus, avocados, grapes and apples.
- South Africa remains committed to a balanced and mutually beneficial partnership with the US that enables preferential trade that supports beneficiation of critical minerals at source and promotes investment.
- As a sovereign constitutional democracy, South Africa will continue to uphold its constitutional responsibilities, transformation objectives and international obligations while pursuing practical solutions that expand trade and investment.
