South Africa has reaffirmed its commitment to maintaining trade relations with the United States despite Washington’s decision to withdraw the country from the African Growth and Opportunity Act (AGOA), insisting that the move will not bring an end to economic cooperation between the two nations.
The South African government, through Trade, Industry and Competition Minister Parks Tau, said AGOA remains an important trade arrangement but does not represent the entirety of the bilateral economic relationship. Tau emphasised that South Africa remains committed to pursuing constructive negotiations with Washington while protecting its national interests.
The United States announced on November 2, 2026, that it intends to withdraw South Africa’s AGOA benefits from January 1, 2027, giving the country 60 days’ notice. The Trump administration cited concerns relating to trade and investment barriers, corruption, national security and foreign policy interests.
AGOA provides eligible African countries with preferential, largely duty-free access to the American market for thousands of products. South Africa has benefited from the programme for more than two decades, particularly in the automotive, agricultural, manufacturing and textile sectors.
However, Pretoria maintains that losing AGOA preferences does not mean South African businesses will lose access to American markets.
According to figures released by the Department of Trade, Industry and Competition, bilateral trade between South Africa and the United States reached approximately US$28.8 billion in 2025. More than 600 American companies operate in South Africa, supporting approximately 134,600 jobs.
Government figures also indicate that around 89% of South African exports to the US entered under ordinary World Trade Organisation trade terms in 2025, while approximately 10% benefited from AGOA preferences. This suggests that although the withdrawal could affect specific industries, the broader trading relationship remains substantial.
South Africa has also indicated that it will accelerate efforts to diversify its export markets, targeting opportunities across the African Continental Free Trade Area, the European Union, India, China, the United Kingdom and other international markets.
Nevertheless, concerns remain about the potential consequences for workers and businesses, particularly in the citrus, automotive and manufacturing industries. Industry representatives have warned that losing preferential access could increase export costs, reduce competitiveness and put some jobs at risk.
Despite the diplomatic and trade challenges, the South African government says it remains open to negotiations and a mutually beneficial partnership with Washington. The coming 60-day period is expected to be important in determining whether further diplomatic engagement can prevent or limit the withdrawal.
________________________________________________________________________________________________________________
