South Africa sweats on Donald Trump’s AGOA trade signature

South Africa says it is prepared for any outcome when the United States announces its decision on the country’s eligibility for preferential African trade benefits for 2027 next week.

Trade, Industry and Competition Minister Parks Tau says the economy will remain stable and South African exporters will continue trading regardless of Washington’s decision on the African Growth and Opportunity Act (AGOA).

READ | Cape Town opens 700 new bays for informal traders in these areas

The US is expected to announce its decision on 2 November 2026, potentially determining whether South Africa retains duty-free access to the American market under the programme.

AGOA provides eligible sub-Saharan African countries with duty-free access to the US market for more than 1 800 products, in addition to the more than 5 000 products covered under the Generalised System of Preferences programme.

Government confident of favourable outcome

Tau said government remained hopeful that the US would respond positively to proposals South Africa had submitted during negotiations over the past year.

He said government had engaged constructively with the US on concerns raised and remained committed to finding common ground.

“This is what is in the best interest of our two nations – the US and SA – as well as of partners in the African continent. We remain committed to engagement and our doors remain open for dialogue,” Tau said.

The Minister added that government was ready to support South African businesses and their employees should the outcome affect trade arrangements.

What has happened in the AGOA negotiations?

In September, Tau met US Trade Representative Ambassador Jamieson Greer in Washington DC to discuss bilateral trade relations and the future of AGOA.

The meeting followed two rounds of discussions between senior officials from both countries.

Tau said substantial progress had been made in addressing the issues raised by the US.

South Africa has also submitted practical proposals through the appropriate diplomatic and trade channels.

The Minister declined to disclose the details of those proposals while negotiations continue.

He said they respected constitutional requirements, South Africa’s international trade obligations and the country’s responsibility to protect animal health, local producers and consumers.

US trade and investment remains significant

Tau stressed that the US remained an important trading and investment partner for South Africa.

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

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

The Minister also revealed that US companies made more than $5 billion in investment commitments over the past year.

South Africa supplies 12 of the 50 minerals identified by the US as critical to its economy and industrial supply chains.

Tau said South Africa was ready to work with the US to beneficiate these minerals at source, creating opportunities to add value before they are exported.

South Africa has 60 days to address concerns

Tau said that even if the US decision raised concerns about South Africa’s eligibility, the country would have 60 days to address them before any full or partial suspension could take effect.

He said South Africa would continue engaging Washington to stabilise trade and investment relations.

The Minister also emphasised that companies in both countries depended on established supply chains and needed a normalised trading environment.

“We are ready, whatever the decision,” Tau said.

South Africa looks to alternative export markets

While negotiations with the US continue, government is pursuing opportunities to diversify South Africa’s export markets.

Tau said Cabinet-approved industrial development plans and the country’s Butterfly Strategy were being used to expand trade opportunities across several regions.

These include:

• The African Continental Free Trade Area (AfCFTA)
• India
• The Southern African Development Community (SADC)
• The European Union (EU)
• The United Kingdom
• The Association of Southeast Asian Nations (ASEAN)
• MERCOSUR
• China

South Africa has also concluded negotiations with the EU on cumulation arrangements aimed at protecting exports of hybrid and electric vehicles.

An interim arrangement has been secured for steel, while new export markets have opened for South African citrus, avocados, grapes and apples.

The government says these efforts are intended to strengthen the country’s ability to trade internationally, regardless of the outcome of the AGOA review.

The announcement on 2 November will therefore be an important development for South African exporters, particularly businesses that rely on preferential access to the American market.