Washington to decide on South Africa’s AGOA benefits
By the AFREEQUE newsroom, based on SABC News
South African exports benefiting from AGOA reached about $1.7 billion last year, and their preferential access to the US market could be challenged for 2027. Washington is expected to announce its decision soon, while Pretoria would have 60 days to respond to US concerns, SABC News reports.
Washington was due to decide on Monday 2 November 2026 whether South Africa would retain its preferential trade benefits under the African Growth and Opportunity Act (AGOA) in 2027, SABC News reports. The US law allows certain African products to enter without customs duties. Exclusion would threaten about $1.7 billion in South African exports that benefited from the scheme the previous year.
The removal of these benefits could affect jobs and investment in South Africa’s automotive and agricultural sectors. South Africa’s Minister of Trade, Industry and Competition Parks Tau said Pretoria was prepared for any outcome, while Cosatu, the country’s main trade union federation, said exclusion appeared increasingly likely, according to SABC News.
The decision comes amid diplomatic tensions between Pretoria and US President Donald Trump’s administration, which objects to certain South African domestic policies and international positions. Parks Tau met US Trade Representative Jamieson Greer in Washington in September to defend duty-free access to the US market.
The deadline follows steps taken after Pretoria was exposed to the risk of losing its US trade benefits on 27 October, and after Ramaphosa prepared South Africa for a possible exit from AGOA on 21 October. Any suspension would not take effect immediately, however: South Africa would have 60 days to respond to US concerns.
