South Africa: South Africa Responds to U.S. Decision On AGOA Benefits Withdrawal

What the report says

South Africa has responded to a U.S. announcement that it intends to withdraw the country’s trade preferences under the African Growth and Opportunity Act, or AGOA, beginning 1 January 2027 after a 60-day notice period. According to the statement carried by SAnews.gov.za and distributed by AllAfrica, the government said it has taken note of the move and will continue seeking a constructive trade relationship with Washington.

Trade, Industry and Competition Minister Parks Tau said the decision does not determine the wider bilateral relationship and that both sides still need to work toward practical solutions. He said the government will support sectors that may be affected, protect South Africa’s national interests and keep pursuing trade, investment and other economic opportunities with the United States.

The report said South Africa considers the U.S. a major trade and investment partner, while also arguing that AGOA is only one part of a broader commercial relationship. It noted that in 2025 most South African exports to the U.S. were sold under normal World Trade Organization terms, while a smaller share used AGOA preferences. The article also said bilateral trade remains substantial and that many U.S. companies operate in South Africa.

Government said it is also working to diversify exports toward other markets, including African, Asian, European and regional partners. The move matters because AGOA has supported some South African exporters and value chains, especially in sectors linked to manufacturing, agriculture and minerals.