AGOA BLOW | SA hits back at Donald Trump over trade decision

South Africa has questioned the United States’ decision to withdraw its preferential trade benefits under the African Growth and Opportunity Act (AGOA), accusing Washington of raising new issues despite months of negotiations.

The government responded after US President Donald Trump gave South Africa 60 days’ notice of his intention to terminate its AGOA benefits from 1 January 2027.

The Department of Trade, Industry and Competition (DTIC) said South Africa had made extensive efforts to address Washington’s concerns, including offering additional trade concessions.

However, it said the US had now introduced matters that were never part of the negotiations that began in 2025.

“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,” the department said.

Government maintained that its proposals complied with World Trade Organisation rules while protecting South Africa’s constitutional obligations and biosecurity requirements.

What happens to South African jobs?

The decision has raised concerns for exporters, businesses and workers who depend on preferential access to the American market.

Government said it was assessing the impact on affected industries and would provide support on a company-by-company basis.

It also plans further discussions with labour and business representatives to protect jobs and strengthen struggling sectors.

Despite the setback, the DTIC stressed that AGOA accounts for a relatively small portion of South Africa’s overall exports.

According to government figures, approximately 10% of South African exports to the US entered under AGOA in 2025, down from 28% in 2024.

The value of those exports fell from $4 billion in 2024 to $1.7 billion in 2025.

Meanwhile, 89% of South African exports to the US entered under ordinary World Trade Organisation trade terms last year.

AGOA exports accounted for approximately 1% of South Africa’s total global exports.

Parks Tau responds to Trump

Trade, Industry and Competition Minister Parks Tau said the decision should not determine the future of economic relations between the two countries.

“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,” Tau said.

He pledged to support affected businesses while continuing efforts to secure trade and investment opportunities with Washington.

Bilateral trade between the countries reached $28.8 billion in 2025.

More than 600 American companies operate in South Africa, supporting approximately 134 600 jobs.

Government warned that losing AGOA benefits could disrupt existing supply chains and undermine investments by South African companies in the US.

SA looks beyond the US

South Africa is now accelerating efforts to expand its export markets.

Government is pursuing opportunities across Africa, India, China, the European Union, the United Kingdom and other international markets.

It has already secured new export opportunities for citrus, avocados, grapes and apples.

The DTIC said the US remained an important trading partner and that South Africa would continue seeking a negotiated solution while protecting its national interests.