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- US President Donald Trump has given notice that he intends to remove South Africa from AGOA from 1 January 2027.
- Trade Minister Parks Tau says Pretoria will keep negotiating, while government assesses the possible impact on exporters, workers and businesses.
South African exporters face losing valuable duty-free access to the United States after President Donald Trump moved to remove the country from a major trade programme.
Trump notified Congress and the South African government on Monday, 2 November, that he intends to terminate South Africa’s benefits under the African Growth and Opportunity Act from 1 January 2027.
The notice gives South Africa 60 days before the proposed removal takes effect.
AGOA gives eligible African countries duty-free access to the US market for more than 1,800 products.
South African carmakers, farmers and manufacturers are among the sectors that have benefited from the programme.
US Trade Representative Jamieson Greer said the decision followed an annual review of countries taking part in AGOA.
He said Trump found that South Africa and Rwanda were engaging in practices that did not meet the programme’s eligibility requirements.
Washington cited barriers to US trade and investment, corruption in South Africa and what it described as threats to American national security and foreign policy interests.
The US statement did not give detailed examples of each allegation.
Trade, Industry and Competition Minister Parks Tau said South Africa would continue trying to find a solution.
“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.
The South African government says it has already offered concessions to address American concerns.
It said the concessions respect South Africa’s Constitution, World Trade Organisation rules and measures designed to protect local producers, consumers and animal health.
But Pretoria says Washington has now raised new concerns that were not part of trade talks that began in 2025.
Government says it is working with businesses to determine how losing AGOA benefits could affect individual companies and workers.
“The government recognises the concern that this decision may create for workers, exporters, businesses and communities linked to AGOA-supported value chains,” it said.
AGOA already makes up a smaller share of South Africa’s exports to America than it did a year earlier.
In 2024, about 28% of South African exports to the US entered under AGOA.
That fell to about 10% in 2025.
The value of AGOA exports fell from about $4-billion in 2024 to $1.7-billion in 2025.
Around 89% of South African exports to America entered under ordinary World Trade Organisation terms in 2025.
But the broader trade relationship remains important.
Trade between South Africa and the US reached $28.8-billion in 2025.
More than 600 American companies operate in South Africa and support about 134,600 jobs.
South Africa also supplies 12 of the 50 minerals the US considers critical.
Government says South Africa supplies about 70% of US isotopes used for purposes including cancer treatment.
Pretoria says it is also trying to reduce South Africa’s reliance on individual export markets.
It is pursuing opportunities across Africa, India, China, Europe, the United Kingdom, Southeast Asia and South America.
New markets have also been opened for South African citrus fruit, avocados, grapes and apples.
Meanwhile, trade union Solidarity and organisation Lex Libertas have blamed President Cyril Ramaphosa and International Relations Minister Ronald Lamola for the worsening relationship with Washington.
Solidarity says the government ignored warnings that strained relations with the Trump administration could put South Africa’s AGOA benefits at risk.
Lex Libertas also accused the government of failing to address US concerns.
Those are the organisations’ claims. The South African government says it has engaged extensively with Washington and made concessions in an effort to resolve the dispute.
Relations between the countries have been strained for some time.
Trump ordered US government agencies in February 2025 to halt aid to South Africa, subject to limited exceptions.
Former South African ambassador Ebrahim Rasool was also expelled from the US in March 2025 after Secretary of State Marco Rubio declared him persona non grata.
Washington has criticised South Africa over issues including land reform and foreign policy.
The Trump administration has also made claims about persecution of white South Africans that Pretoria disputes.
Rwanda has also been given notice that its AGOA benefits will end on 1 January 2027.
For now, Tau says South Africa will continue talks with Washington while preparing support for businesses and workers that could be affected if the trade benefits disappear.
