Trade, Industry and Competition responds to the withdrawal of AGOA benefits

South Africa responds to the withdrawal of AGOA benefits

The South African Government notes the decision by the United States Government giving South Africa 60 days advance notice of its intention to withdraw South Africa’s benefits under the African Growth and Opportunity Act (AGOA) effective 1 January 2027. Government recognises the concern that this decision may create for workers, exporters, businesses and communities linked to AGOA supported value chains.

The impact will differ across sectors, and government is working closely with affected industries to assess the implications and will continue to provide appropriate support, on a company to company basis. As a responsible Government, South Africa has proactively retained measures that were availed as a response to the Reciprocal Tariffs.

Government will undertake further engagements with social partners to optimise the support measures aimed at improving resilience and sustainability of the productive sectors whilst diversifying exports and protecting jobs.

Government has put extensive efforts to constructively respond to the US concerns and has tabled beyond the 2015 concessions, additional concessions through the appropriate channels. These concessions respect due process, safeguard South Africa’s biosecurity and constitutional imperatives and its obligations under World Trade Organisation rules. It is however unfortunate that the US is now raising new issues that have not been the basis for discussions as part of the negotiations process that commenced in 2025.

AGOA remains important to South Africa, but it does not constitute the totality of the economic relationship between South Africa and the United States. In 2025, approximately 89% of South African exports to the United States entered under ordinary World Trade Organisation most favoured nation terms, while approximately 10% entered under AGOA, down from 28% in 2024. AGOA exports were valued at approximately US$1.7 billion in 2025, down from $4 billion in 2024. AGOA exports represented about 1% of South Africa’s total global exports.

Bilateral trade reached US$28.8 billion in 2025, while more than 600 American companies operate in South Africa, supporting approximately 134 600 jobs. Trade relations are complementary and mutually beneficial. South Africa supplies 12 of the 50 minerals regarded as critical by the United States, 70% of US isotopes used among others in cancer treatments, sources inputs from the US on goods manufactured for exports to the US under AGOA such as autos and boat building. South African companies are also invested in the US economy and the loss of AGOA will undermine these investments and negatively affect existing value chains.

Government will continue to accelerate the diversification of South Africa’s export markets. Through its Cabinet-approved Industrial Development Strategy and Butterfly Strategy, South Africa is pursuing market opportunities across the African Continental Free Trade Area, India, SADC, the European Union, the United Kingdom, ASEAN, MERCOSUR and China. New market opportunities have also been secured for South African citrus, avocados, grapes and apples.

Minister Parks Tau said: “This decision does not define the broader relationship between South Africa and the United States, however a solution depends on the willingness of both Parties to find solutions. At the same time, government will support affected sectors, protect South Africa’s national interests and continue pursuing trade, investment and shared economic opportunities with the United States.”

The United States remains an important trade and investment partner. South Africa remains committed to a balanced and mutually beneficial partnership with the US that enables preferential trade that supports beneficiation of critical minerals at source and promotes investment. As a sovereign constitutional democracy, South Africa will continue to uphold its constitutional responsibilities, transformation objectives and international obligations while pursuing practical solutions that expand trade and investment.

For further enquiries contact:
Kaamil Alli
Ministerial Spokesperson
Mobile: +27 82 520 6813

WhatsApp: +27 82 520 6813
E-mail: KAlli@thedtic.gov.za

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