South Africa Responds to U.S. Decision to Withdraw AGOA Benefits: Effective January 1, 2027, Government to Support Affected Sectors
The South African government said in a statement on November 2 that it had noted the decision by the United States government giving South Africa 60 days' advance notice of its intention to withdraw the country's benefits under the African Growth and Opportunity Act (AGOA), effective January 1, 2027. U.S. Trade Representative Jamieson Greer said the same day that President Donald Trump had notified Congress and the governments of South Africa and Rwanda of his intention to remove both countries from the programme; the U.S. statement cited deep concern over barriers to U.S. trade and investment, corruption, and threats to U.S. national security and foreign policy interests in South Africa.
Minister of Trade, Industry and Competition Parks Tau said: "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." He said the government would support affected sectors, protect South Africa's national interests and continue pursuing trade, investment and shared economic opportunities with the United States. Tau also said that, as a sovereign constitutional democracy, South Africa would uphold its constitutional responsibilities and international obligations while seeking practical solutions to expand trade and investment.
The government said it recognised the concern the decision may create for workers, exporters, businesses and communities linked to AGOA-supported value chains, and that the impact would differ across sectors. It is working closely with affected industries to assess the implications and will continue to provide appropriate support on a company-by-company basis. South Africa has proactively retained measures introduced in response to the reciprocal tariffs, and will undertake further engagements with social partners to strengthen support for productive sectors while diversifying exports and protecting jobs.
The statement said South Africa had made extensive efforts to respond constructively to U.S. concerns and had tabled, through the appropriate channels, additional concessions beyond those agreed in 2015. Those concessions respect due process and safeguard South Africa's biosecurity and constitutional imperatives and its obligations under World Trade Organization rules. It was unfortunate, the government said, that the United States was now raising new issues that had not been the basis of discussions in the negotiation process that began in 2025.
In 2025, about 89 percent of South African exports to the United States entered under ordinary World Trade Organization most-favoured-nation terms, while AGOA exports accounted for about 10 percent, down from 28 percent in 2024. AGOA exports totalled nearly $1.7 billion in 2025, down from $4 billion in 2024, and accounted for roughly 1 percent of South Africa's total global exports. Bilateral trade reached $28.8 billion in 2025, with more than 600 American companies operating in South Africa and supporting approximately 134,600 jobs. South Africa supplies 12 of the 50 minerals deemed critical by the United States, and 70 percent of the isotopes used in U.S. cancer treatments.
The government said it remains committed to diversifying its export markets. Its Cabinet-approved Industrial Development Strategy and Butterfly Strategy are targeting opportunities across the African Continental Free Trade Area, India, the Southern African Development Community, the European Union, the United Kingdom, ASEAN, MERCOSUR and China, and new markets have also opened for South African citrus, avocados, grapes and apples.
(Source: South African Department of Trade, Industry and Competition)
Source: South African Department of Trade, Industry and Competition
Published by GSM · USA (original Chinese edition)
Photo: 图：南非 Durban 港集装箱码头。CC BY-SA 3.0，经 Wikimedia Commons。 / Photo: The container terminal at the Port of Durban, South Africa. CC BY-SA 3.0, via Wikimedia Commons.
