Pretoria:The South African government has acknowledged the announcement by the United States regarding its intention to withdraw South Africa's benefits under the African Growth and Opportunity Act (AGOA), effective from January 1, 2027, with a 60-day advance notice period.
According to South African Government News Agency, 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. Tau emphasized that this decision does not define the broader relationship between the two nations and called for continued dialogue to resolve trade challenges.
Minister Tau assured that the South African government is focused on protecting the interests of sectors affected by the decision, pledging support for these sectors while continuing to pursue trade and investment opportunities with the United States. He reaffirmed South Africa's dedication to a balanced and mutually beneficial partnership that supports preferential trade and investment promotion.
The South African Government remains engaged in efforts to navigate trade challenges and strengthen cooperation with the US. It acknowledges the concerns raised by this decision for workers, exporters, businesses, and communities connected to AGOA-supported value chains and is actively collaborating with affected industries to assess the full implications.
Despite South Africa's extensive efforts to address US concerns, including additional concessions, the US has introduced new issues outside the scope of ongoing negotiations. In 2025, about 89% of South African exports to the US were under ordinary World Trade Organisation terms, with AGOA exports declining to approximately 10%.
Bilateral trade between the two nations reached US$28.8 billion in 2025, with over 600 American companies operating in South Africa. The South African government remains committed to diversifying export markets and targets new opportunities across various regions such as the African Continental Free Trade Area and the European Union.
