Pretoria questions Trump’s shifting demands after AGOA removal

Government has questioned the changing demands of the United States (US) President Donald Trump’s administration in trade negotiations, saying Washington has introduced new concerns despite Pretoria making additional concessions in an effort to preserve preferential access to the US market.

The Department of Trade, Industry and Competition made the remarks on Monday after Trump notified President Cyril Ramaphosa that he intends to remove South Africa from the African Growth and Opportunity Act (AGOA), effective January 1, 2027.

In its response, government said it had gone beyond the trade concessions agreed to in 2015 in an attempt to address Washington’s concerns. However, Pretoria believes the US has now introduced fresh issues that were not previously raised during the negotiations, which started 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.

READ: Agoa fears grow as Cosatu warns South Africa will probably lose US trade benefits

Trump’s October 28 letter gave South Africa 60 days’ advance notice of his intention to end its beneficiary status under the programme.

The US president justified the move by accusing the South African government of failing to demonstrate sufficient commitment to addressing corruption and bribery, as required by AGOA.

He also criticised South Africa’s trade policies, arguing that tariffs and other restrictions were making it difficult for American businesses to access the local market.

The letter further linked Washington’s decision to Pretoria’s international relations, warning that certain South African government actions involving international security and cooperation with governments viewed unfavourably by the US could undermine American foreign policy interests.

Negotiation guided by domestic laws

South Africa, however, maintains that its negotiating position has been guided by its domestic laws and international trade obligations.

The department said the additional offers made to Washington were designed to accommodate trade concerns without compromising the country’s constitutional responsibilities or its ability to protect its agricultural sector.

“These concessions respect due process, safeguard South Africa’s biosecurity and constitutional imperatives and its obligations under World Trade Organization rules,” it said.

The impending loss of AGOA benefits has also raised concerns about the businesses and workers whose livelihoods are connected to exports into the American market.

Government said it was assessing the potential consequences with affected industries and would provide assistance to companies facing difficulties. It also intends to consult social partners on ways to strengthen local industries, protect employment and reduce the country’s exposure to disruptions in international markets.

US-SA commercial relationship goes beyond AGOA

While acknowledging that AGOA remains an important trading instrument, the department argued that South Africa’s commercial relationship with the US extends well beyond the programme.

Government figures show that about 89% of South African exports to the US in 2025 entered under ordinary World Trade Organization most-favoured-nation arrangements. Approximately 10% benefitted from AGOA provisions.

The value of South African exports under the programme also fell to about US$1.7-billion last year, compared with US$4-billion in 2024. AGOA-linked exports accounted for approximately 1% of the country’s overall exports to the world.

The department further pointed to the extent of American commercial interests in South Africa, saying more than 600 US companies have operations in the country and collectively support about 134,600 jobs.

Bilateral trade between the two countries amounted to US$28.8-billion in 2025.

Pretoria also highlighted its contribution to American supply chains, including 12 minerals from the list of 50 that Washington classifies as critical resources. South Africa also supplies 70% of the isotopes used in the US, including those applied in cancer treatment.

The government believes the breakdown of preferential trade arrangements could have consequences for American and South African businesses with established commercial interests in both markets.

Trade, Industry and Competition Minister Parks Tau said Pretoria remained interested in finding common ground with Washington despite the latest development.

“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.

READ: Talks on reviewing AGOA will kickstart in US this week

He said government would continue supporting vulnerable industries while protecting the country’s interests and pursuing opportunities for increased trade and investment.

Export diversification efforts continue

South Africa is also looking to reduce its reliance on the American market by expanding commercial opportunities elsewhere.

Its export diversification efforts include pursuing opportunities through the African Continental Free Trade Area, India, the Southern African Development Community, the European Union, the United Kingdom, ASEAN, MERCOSUR and China.

The department also pointed to new export opportunities for local agricultural products, including citrus, avocados, grapes and apples.

It reiterated that Pretoria wanted to maintain a constructive relationship with Washington, but would not abandon its domestic policy obligations in pursuit of a trade agreement.

“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,” the department said.

US Ambassador to South Africa Brent Bozell took to social media to weigh in on the latest developments.

“This was a predictable and preventable outcome resulting from the rejection by South Africa’s government of real concerns raised by the US government.”

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