South Africa has criticised Washington’s decision to withdraw its African Growth and Opportunity Act benefits from January 2027….reports Africa Daily News Desk
South Africa has criticised the United States’ decision to withdraw its benefits under the African Growth and Opportunity Act (AGOA), warning that the move could affect exporters, businesses and jobs despite efforts to address Washington’s trade concerns.
In a media statement issued on 2 November, the South African Government said it had received 60 days’ advance notice of the US decision to withdraw the country’s AGOA benefits, effective from 1 January 2027. It acknowledged concerns over the potential impact on workers, exporters, businesses and communities linked to industries benefiting from the trade programme.
The government said the consequences would vary across sectors and that it was working with affected industries to assess the implications and provide support on a company-by-company basis.
South Africa also plans further discussions with social partners to strengthen support measures, improve the resilience of productive sectors, diversify exports and protect jobs.
The decision follows a series of negotiations between Pretoria and Washington over trade concerns. The South African Government said it had made efforts to address US concerns and had submitted additional concessions through the appropriate channels, going beyond the concessions offered in 2015.
It said the proposals were designed to respect due process, protect the country’s biosecurity and constitutional requirements, and comply with World Trade Organisation (WTO) obligations.
However, Pretoria expressed disappointment that Washington had raised new issues that were not part of the discussions during negotiations which began in 2025.
AGOA accounts for smaller share of South African exports
The government said AGOA remained important to South Africa but did not represent the entirety of its economic relationship with the United States.
In 2025, approximately 89 per cent of South African exports to the US entered under ordinary WTO most-favoured-nation terms, while around 10 per cent qualified for AGOA benefits. The latter figure was down from 28 per cent in 2024.
South Africa’s AGOA exports were valued at approximately US$1.7 billion in 2025, compared with US$4 billion in 2024. These exports accounted for about one per cent of the country’s total global exports.
Despite the decline in AGOA-linked trade, bilateral trade between the two countries reached US$28.8 billion in 2025. More than 600 American companies operate in South Africa, supporting approximately 134,600 jobs.
The government highlighted the complementary nature of the two economies, noting that South Africa supplies 12 of the 50 minerals classified as critical by the United States. It also supplies 70 per cent of US isotopes used, among other applications, in cancer treatment.
South African manufacturers also rely on inputs sourced from the US for products made for export under AGOA, including automobiles and boats. Pretoria warned that the withdrawal of trade benefits could undermine investments by South African companies in the US and disrupt existing value chains.
The government said it would continue efforts to diversify export markets through its Cabinet-approved Industrial Development Strategy and Butterfly Strategy.
Its target markets include the African Continental Free Trade Area, India, the Southern African Development Community, the European Union, the United Kingdom, ASEAN, MERCOSUR and China.
South Africa has also secured new market opportunities for agricultural products, including citrus fruits, avocados, grapes and apples.
