The Department of Trade, Industry and Competition (DTIC) has revealed that the African Growth and Opportunity Act (AGOA) exports had dropped drastically ahead of the US announcement to terminate South Africa from the programme.
This comes after the US under the Trump administration granted South Africa 60 days advance notice of its intention to withdraw its AGOA benefits effective January 1, 2027.
AGOA gives eligible African countries duty-free access to the US market for thousands of products.
READ: Pretoria questions Trump’s shifting demands after AGOA removal
Previously, Sunday World reported on the warning by President Cyril Ramaphosa that the country should prepare for the potential exclusion from AGOA as diplomatic relations between the two countries have soured.
AGOA eligibility criteria
Ambassador Jamieson Greer, US trade representative, said in a statement that South Africa and Rwanda were engaged in practices that do not align with the eligibility criteria of AGOA.
He noted alleged threats to the US national security, corruption and barriers to US trade and investment as main concerns that suspended South Africa from the AGOA trade preference programme.
“These concerning and pervasive practices include, but are not limited to, barriers that undermine American trade and investment and practices that pose a threat to U.S. national security and foreign policy interests in the region.
“Trump administration is working to ensure our African partners take the necessary steps to meet the eligibility criteria,” said Greer.
Additional concessions offered to US
Kaamil Alli, spokesperson to the minister of DTIC, said government had made efforts to address the US’s concerns and had offered additional concessions beyond those agreed to in 2015.
He said the concessions followed the proper procedures and protected South Africa’s biosecurity, constitutional principles and commitments under World Trade Organization rules.
“It is, however, unfortunate that the US is now raising new issues that have not even the basis for discussions as part of the negotiations processes that commenced in 2025,” said Alli.
He revealed that South Africa’s AGOA exports were valued at approximately $1.7 billion (approximately R28 billion) in 2025, showing a 57.5% decline from $4 billion in the previous year.
Alli said exports under AGOA accounted for approximately 1% of the country’s total global exports in 2025.
Despite the relatively small contribution of AGOA to the country’s overall exports, the department acknowledged that its withdrawal could affect business, workers and communities connected to industries that benefit from preferential access to the American market.
Alli also highlighted the broader economic relationship between the two countries, with bilateral trade reaching US$28.8bn in 2025.
More than 600 American companies operate in South Africa, supporting approximately 134 600 jobs, according to the statement.
South Africa also supplies 12 of the 50 minerals classified as critical by the US, as well as 70% of the isotopes used by the country for applications including cancer treatment.
According to Alli, the withdrawal could undermine existing investments and supply chains, particularly because South African manufacturers source inputs from the US for products exported under AGOA, including vehicles and boats.
READ: Agoa fears grow as Cosatu warns South Africa will probably lose US trade benefits
SA maintains trade relationship with US
Minister of Trade, Industry and Competition Parks Tau said the decision did not define the broader relationship between the two countries.
“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.
He said government would continue supporting affected sectors, protecting national interests and pursuing trade and investment opportunities with the US.
- South Africa's exports under the African Growth and Opportunity Act (AGOA) dropped 57.5% from $4 billion in 2024 to approximately $1.7 billion in 2025.
- The US Trump administration gave South Africa 60 days' notice of its intention to terminate AGOA benefits effective January 1, 2027, citing concerns over national security, corruption, and trade barriers.
- Despite offering additional concessions beyond 2015 agreements, South Africa's government criticized the US for raising new issues outside prior negotiations.
- AGOA exports accounted for about 1% of South Africa's total global exports in 2025, with bilateral trade between the US and South Africa reaching $28.8 billion in the same year.
- Over 600 American companies operate in South Africa, supporting approximately 134,600 jobs, and South Africa supplies critical minerals and 70% of isotopes used by the US for medical applications.
The Department of Trade, Industry and Competition (DTIC) has revealed that the African Growth and Opportunity Act (AGOA) exports had dropped drastically ahead of the US announcement to terminate South Africa from the programme.
This comes after the US under the Trump administration granted South Africa 60 days advance notice of its intention to withdraw its AGOA benefits effective January 1, 2027.
AGOA gives eligible African countries duty-free access to the US market for thousands of products.
READ: Pretoria questions Trump's shifting demands after AGOA removal
Previously, Sunday World reported on the warning by President Cyril Ramaphosa that the country should prepare for the potential exclusion from AGOA as diplomatic relations between the two countries have soured.
Ambassador Jamieson Greer, US trade representative, said in a statement that South Africa and Rwanda were engaged in practices that do not align with the eligibility criteria of AGOA.
He noted alleged threats to the US national security, corruption and barriers to US trade and investment as main concerns that suspended South Africa from the AGOA trade preference programme.
“These concerning and pervasive practices include, but are not limited to, barriers that undermine American trade and investment and practices that pose a threat to U.S. national security and foreign policy interests in the region.
“Trump administration is working to ensure our African partners take the necessary steps to meet the eligibility criteria,” said Greer.
Kaamil Alli, spokesperson to the minister of DTIC, said government had made efforts to address the US's concerns and had offered additional concessions beyond those agreed to in 2015.
He said the concessions followed the proper procedures and protected South Africa's biosecurity, constitutional principles and commitments under World Trade Organization rules.
“It is, however, unfortunate that the US is now raising new issues that have not even the basis for discussions as part of the negotiations processes that commenced in 2025,” said Alli.
He revealed that South Africa’s AGOA exports were valued at approximately $1.7 billion (approximately R28 billion) in 2025, showing a 57.5% decline from $4 billion in the previous year.
Alli said exports under AGOA accounted for approximately 1% of the country’s total global exports in 2025.
Despite the relatively small contribution of AGOA to the country’s overall exports, the department acknowledged that its withdrawal could affect business, workers and communities connected to industries that benefit from preferential access to the American market.
Alli also highlighted the broader economic relationship between the two countries, with bilateral trade reaching US$28.8bn in 2025.
More than 600 American companies operate in South Africa, supporting approximately 134 600 jobs, according to the statement.
South Africa also supplies 12 of the 50 minerals classified as critical by the US, as well as 70% of the isotopes used by the country for applications including cancer treatment.
According to Alli, the withdrawal could undermine existing investments and supply chains, particularly because South African manufacturers source inputs from the US for products exported under AGOA, including vehicles and boats.
READ: Agoa fears grow as Cosatu warns South Africa will probably lose US trade benefits
Minister of Trade, Industry and Competition Parks Tau said the decision did not define the broader relationship between the two countries.
“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.
He said government would continue supporting affected sectors, protecting national interests and pursuing trade and investment opportunities with the US.
