For the workers, exporters and communities whose livelihoods depend on goods flowing into American markets under preferential trade terms, the news from Washington landed with real weight. The United States has formally signalled its intention to end South Africa’s participation in the African Growth and Opportunity Act, known as AGOA, with the withdrawal of benefits set to take effect on January 1, 2027. The decision, notified to Congress by US President Donald Trump on Monday, gives the country 60 days’ advance notice and marks a major setback for Pretoria’s efforts to retain preferential access to the US market amid growing tensions between the two countries.
Trade, Industry and Competition Minister Parks Tau moved quickly to reassure. The move, he said, does not define the broader relationship between South Africa and the United States, though he warned that finding a solution depends on the willingness of both parties to engage. “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 added that government would support affected sectors, protect the country’s national interests, and continue pursuing trade, investment and shared economic opportunities with the US.
The human stakes are not lost on the government itself. In its response, it acknowledged the concern the decision may create for workers, exporters, businesses and communities linked to AGOA-supported value chains. Officials said the impact would differ across sectors and that they are working closely with affected industries to assess the implications and provide support on a company-by-company basis. Government also pledged further engagements with social partners to strengthen support measures aimed at improving the resilience and sustainability of productive sectors, diversifying exports and protecting jobs.
The formal basis for the decision came from US Trade Representative Jamieson Greer, who said it followed an annual review of sub-Saharan African countries’ eligibility for the programme. According to Greer, Trump had found that South Africa and Rwanda were engaging in practices inconsistent with AGOA’s eligibility requirements, including barriers to US trade and investment, as well as practices considered threats to US national security and foreign policy interests.
Pretoria has pushed back on the framing. It said South Africa had made extensive efforts to respond constructively to US concerns and had tabled additional concessions through the appropriate channels, going beyond those made in 2015. Those concessions, government said, respect due process, safeguard the country’s biosecurity and constitutional imperatives, and honour its obligations under World Trade Organisation rules. It described it as unfortunate that the US is now raising new issues that had not formed the basis of discussions in the negotiations process that commenced in 2025. South Africa has also proactively retained measures introduced in response to the reciprocal tariffs imposed by the US.
Government stressed that AGOA, while important, is not the whole of the economic relationship. In 2025, approximately 89% of South African exports to the United States entered under ordinary World Trade Organisation most favoured nation terms, while roughly 10% entered under AGOA, down from 28% in 2024. AGOA exports were valued at about US$1.7 billion in 2025, down from US$4 billion in 2024, and account for about 1% of South Africa’s total global exports. Bilateral trade reached US$28.8 billion in 2025, and more than 600 American companies operate in South Africa, supporting approximately 134,600 jobs.
The relationship, government argued, is complementary and mutually beneficial. South Africa supplies 12 of the 50 minerals the US regards as critical, provides 70% of US isotopes used among other things in cancer treatments, and sources inputs from the US for goods manufactured for export to America under AGOA, such as autos and boat building. South African companies are also invested in the US economy, and government warned that the loss of AGOA could undermine those investments and damage existing value chains. It said it would continue accelerating the diversification of export markets through the Cabinet-approved Industrial Development Strategy and Butterfly Strategy, pursuing opportunities across the African Continental Free Trade Area, India, SADC, the European Union, the United Kingdom, ASEAN, MERCOSUR and China, with new markets secured for citrus, avocados, grapes and apples.
Not everyone placed the responsibility abroad. The organisations Solidarity and Lex Libertas blamed President Cyril Ramaphosa and International Relations Minister Ronald Lamola, warning that workers and export industries could bear the consequences of deteriorating diplomatic relations. Solidarity expressed disappointment at the White House’s decision, calling it a direct consequence of the government’s failure to repair its relationship with Washington, and said Ramaphosa and Lamola had repeatedly ignored warnings about the consequences of their foreign policy decisions and public statements. Lex Libertas said Pretoria knew exclusion was a possibility but failed to take reasonable steps to prevent it, and should have addressed US concerns relating to incitement to violence against minorities, property rights and free-market policies, accusing the government of prioritising political ideology over the economic interests of South Africans.
Meanwhile, Tau, for his part, said South Africa remains committed to a balanced and mutually beneficial partnership with the US, one that enables preferential trade supporting beneficiation of critical minerals at source and promotes investment. The country, he added, would continue to uphold its constitutional responsibilities, transformation objectives and international obligations while pursuing practical solutions to expand trade and investment. Whether those solutions arrive before January 1, 2027, when the withdrawal takes effect, may now decide the fate of thousands of jobs tied to AGOA-supported value chains.