South Africa Responds to US AGOA Removal Threat

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CAPE TOWN – South Africa has moved to contain the economic fallout from its impending removal from the African Growth and Opportunity Act (AGOA), with Trade and Industry Minister Parks Tau insisting that the loss of preferential access will not end trade with the United States.

In a response to Washington’s decision, Tau said AGOA accounted for about 1% of South Africa’s total global exports, although he acknowledged that some industries and workers faced significant disruption.

The Zimbabwe Mail, reporting on Tau’s statement as published by BusinessTech, said the Trump administration had notified Pretoria of its intention to remove South Africa from the programme from January 1, 2027. The United States has cited trade barriers, concerns over corruption and South Africa’s international security and foreign policy relationships.

Tau said South Africa had 60 days to address the concerns raised by Washington, while government was assessing the potential impact on businesses and communities dependent on AGOA-linked exports.

South African exports under the programme were worth approximately US$1.7 billion in 2025, down from US$4 billion in 2024. Tau said about 89% of the country’s exports to the US entered under ordinary World Trade Organisation most-favoured-nation terms, while roughly 10% benefited from AGOA preferences.

Despite the threat to preferential access, bilateral trade between the two countries reached US$28.8 billion in 2025, with more than 600 American companies operating in South Africa and supporting an estimated 134,600 jobs.

Tau said the government would accelerate efforts to diversify export markets across Africa, Europe, the Middle East and Asia. New market opportunities had also been secured for South African citrus, avocados, grapes and apples.

However, the Bureau for Economic Research cautioned that diversification would not provide an immediate replacement for established trade relationships. It warned that gains in one export sector or destination would not necessarily protect employment in industries directly affected by the loss of US market access.

The minister said Pretoria would support affected businesses while continuing to pursue trade and investment opportunities with Washington.

He also made clear that South Africa would not abandon its domestic policy framework in response to the US pressure, saying the country would continue to uphold its constitutional responsibilities, transformation objectives and international obligations.

The dispute therefore leaves South African exporters facing a period of uncertainty as businesses prepare for the possible loss of preferential access to one of their established markets.