Government says it has acknowledged the announcement by the United States government regarding its intention to withdraw South Africa’s benefits under the African Growth and Opportunity Act (AGOA), effective from 1 January 2027, with a 60-day advance notice period.
Trade, Industry and Competition Minister Parks Tau addressed the implications of the recent trade decision involving South Africa and the United States, affirming the country’s commitment to a constructive and balanced partnership.
“This decision does not define the broader relationship between South Africa and the United States, however, a solution depends on the willingness of both parties to find solutions,” Tau stated, highlighting the importance of ongoing dialogue to resolve trade challenges.
He assured that the South African government is focused on protecting the interests of sectors affected by the decision.
“At the same time, government will support affected sectors, protect South Africa’s national interests and continue pursuing trade, investment and shared economic opportunities with the United States,” Tau said.
Acknowledging the significance of the US as a key trade and investment partner, the Minister reaffirmed South Africa’s dedication to a balanced and mutually beneficial partnership.
“South Africa has affirmed its commitment to a balanced and mutually beneficial partnership that supports preferential trade, beneficiation of critical minerals at source and investment promotion.”
Tau reiterated South Africa’s sovereign responsibilities and goals. “As a sovereign constitutional democracy, South Africa will uphold its constitutional responsibilities, transformation objectives, and international obligations, while seeking practical solutions to expand trade and investment,” he affirmed.
This stance underscores South Africa’s commitment to advancing economic growth through strategic partnerships, while safeguarding national interests and fostering equitable development.
Mutual benefit
The South African Government says it remains engaged in efforts to navigate trade challenges and strengthen cooperation with the United States.
Government also recognises the concerns this decision raises for workers, exporters, businesses, and communities connected to AGOA-supported value chains, and that the impact will vary across different sectors.
Government is actively collaborating with affected industries to assess the full implications.
Despite extensive efforts by South Africa to respond constructively to US concerns, including offering additional concessions beyond those agreed in 2015 through the proper channels, the US has introduced new issues outside the scope of the ongoing negotiation process that began in 2025.
“These concessions respect due process, safeguard South Africa’s biosecurity and constitutional imperatives and its obligations under World Trade Organisation 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 still holds significance for South Africa but does not represent the entirety of the economic relationship between the two countries,” government said in a statement.
In 2025, about 89% of South African exports to the US were under ordinary World Trade Organisation most favoured nation terms, while only approximately 10% were AGOA exports — a decline from 28% in 2024. AGOA exports totalled nearly US $1.7billion in 2025, down from US $4 billion in 2024, and accounted for roughly 1% of South Africa’s total global exports.
Bilateral trade reached US$28.8 billion in 2025, with over 600 American companies operating in South Africa and supporting approximately 134 600 jobs. Trade relations between the two are complementary and mutually beneficial.
South Africa plays a critical role in supplying key minerals to the US, including 12 of the 50 minerals deemed critical by the US, and 70% of US isotopes used in cancer treatments. Additionally, South Africa sources inputs from the US for goods manufactured for export under AGOA, such as automobiles and boat building.
South African investments in the US economy may be adversely affected by the AGOA withdrawal, potentially undermining existing value chains.
Government said it remains committed to diversifying export markets aggressively. Its Cabinet-approved Industrial Development Strategy and Butterfly Strategy are targeting new opportunities across the African Continental Free Trade Area, India, SADC, the European Union, the United Kingdom, ASEAN, MERCOSUR and China. New markets have also opened up for South African citrus, avocados, grapes and apples. – SAnews.gov.za
Source: Original report at SAnews.gov.za.
