Donald Trump has notified Congress of plans to remove South Africa and Rwanda from the African Growth and Opportunity Act from January 2027
Washington’s move to strip South Africa of preferential trade access does not define the countries’ broader relationship, South African Trade, Industry and Competition Minister Parks Tau has said, stressing that a solution depends on both sides’ willingness to engage.
His comments follow President Donald Trump’s notification to Congress of his intention to terminate South Africa’s participation in the African Growth and Opportunity Act (AGOA) from January 1, 2027.
READ MORE: Trump to strip South Africa and Rwanda of US trade benefits
“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.
US Trade Representative Jamieson Greer said an annual review found South Africa and Rwanda were engaging in practices inconsistent with AGOA requirements, including barriers to US trade and investment and threats to American security and foreign policy interests.
The South African government said it was working with affected industries to assess the implications and provide support on a company-by-company basis, adding it had offered additional concessions beyond those made in 2015, while safeguarding constitutional obligations, biosecurity and World Trade Organization rules.
“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.”
Government said approximately 89% of South African exports to the US entered under ordinary WTO terms in 2025, while about 10% entered under AGOA, down from 28% in 2024. AGOA exports were valued at approximately $1.7 billion, down from $4 billion in 2024, and accounted for about 1% of total global exports.
Bilateral trade reached $28.8 billion in 2025, while more than 600 American companies operate in South Africa, supporting approximately 134,600 jobs.
Government said it would accelerate export diversification, pursuing opportunities across Africa, India, the EU, the UK, Southeast Asia, South America and China. New markets had been secured for citrus, avocados, grapes and apples.
Read more US shuts, China opens: Where did the trade war move?Tau said government would support affected sectors, protect national interests and continue pursuing trade and investment opportunities with the US.
South African organizations Solidarity and Lex Libertas blamed President Cyril Ramaphosa and International Relations Minister Ronald Lamola for the decision, warning of consequences for workers and exporters.
Solidarity said they had ignored warnings about deteriorating relations with Washington. Lex Libertas accused Pretoria of failing to address US concerns over incitement against minorities, property rights and free-market policies.
First published by IOL
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