Loss of AGOA makes South African trade with the US more expensive
By the AFREEQUE newsroom, based on Business Day (South Africa)
The end of AGOA benefits is expected to increase the cost of trade between South Africa and the United States, despite the maintenance of other trade regimes. South African exports benefiting from these preferences represent about $1.6 to $1.7 billion, according to Business Day.
South African exports to the United States that benefited from AGOA preferences, a US law promoting trade with African countries, represent about $1.6 to $1.7 billion. The withdrawal of these benefits will increase the cost of certain South African goods sold to the United States, according to Saul Levin, executive director of Trade and Industrial Policy Strategies, cited by Business Times.
Between 74% and 90% of South African goods exported to the United States are already subject to the most-favoured-nation rules of the World Trade Organization, for a total of about $16.5 billion a year. Bilateral trade between the two countries reached $28.8 billion in 2025, according to Business Times.
Saul Levin believes that US President Donald Trump no longer considers South Africa a strategic partner and judges a return of the country to AGOA during his term unlikely. He points out that the withdrawal comes as 19 African countries are now excluded from the scheme, while estimating that critical minerals remain an important issue in trade relations between Washington and Pretoria, reports Business Times.
The withdrawal comes after Ramaphosa accelerated trade diversification on 4 November, the day after the US decision to exclude South Africa from the scheme. It follows the preparations begun by Ramaphosa before a possible exit from AGOA on 21 October.
