WASHINGTON. – South Africa could lose its preferential access to the United States market under the African Growth and Opportunity Act (Agoa) from 1 January 2027. United States President Donald Trump notified Congress on 2 November of his intention to end South Africa's beneficiary status under the trade agreement. Rwanda has also been included in the decision.
Ambassador Jamieson Greer, United States Trade Representative, says the decision follows an annual review of participating African countries' eligibility. The United States government argues that South Africa's trade and investment barriers, corruption and conduct that according to Washington threatens American national security and foreign policy interests do not meet Agoa's requirements.
Parks Tau, Minister of Trade, Industry and Competition, says the government takes note of the decision and will continue to diversify export markets to protect businesses and employment. He says Agoa remains important, but does not represent the total trade relationship between South Africa and the United States. The government is exploring further trade opportunities in Africa, India, the European Union and China, among others.
According to the government, approximately 89% of South Africa's exports to the United States in 2025 took place under ordinary World Trade Organization trade terms, while about 10% fell under Agoa. The value of Agoa exports was approximately US$1.7 billion, compared with US$4 billion in 2024.
Agoa was established in 2000 and offers qualifying countries south of the Sahara duty-free access to the United States market for more than 1 800 products. The programme was extended earlier this year to 31 December 2026. Trump's latest notification means that South Africa's participation could be terminated thereafter if the decision takes effect.
The South African government says it will continue to engage with Washington and at the same time explore measures to limit potential consequences for exporters, businesses and workers.
Sources: USTR, IOL, SABC, SAnews, USTR
This article is an automatic English translation of a Nuusflits article originally published in Afrikaans. Read the Afrikaans original.
