Cape Town – US President Donald Trump has formally notified South Africa of his intention to terminate the country’s designation as a beneficiary of the African Growth and Opportunity Act (AGOA), threatening its preferential access to the American market from January 1, 2027.
In a letter dated October 28, 2026, addressed to President Cyril Ramaphosa, Trump issued a 60-day advance notice of the planned withdrawal, citing concerns over South Africa’s trade policies, alleged barriers to US investment and issues relating to international security.
“By this letter, pursuant to the African Growth and Opportunity Act (AGOA), I am providing 60-day advance notice to your government that I intend to terminate the designation of the Republic of South Africa (South Africa) as a beneficiary sub-Saharan African country under AGOA, effective January 1, 2027,” Trump wrote.
The US president accused the South African government of failing to demonstrate sufficient commitment to addressing corruption and bribery, as well as removing barriers to American trade and investment.
SABC News has obtained a copy of the letter sent by President Trump to President Ramaphosa announcing termination of South Africa’s AGOA eligibility
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— Sherwin Bryce-Pease (@sherwiebp) November 2, 2026
“I am taking this step because I have determined that the Government of South Africa has not established, or is not making continual, demonstrable, good faith efforts toward establishing, a system to combat corruption and bribery or the elimination of barriers to United States trade and investment,” the letter stated.
Trump also raised concerns about South Africa’s international security relationships and cooperation with Washington, arguing that certain government actions were contrary to US national security and foreign policy interests.
He further criticised what he described as significant tariff and non-tariff barriers affecting American businesses and investors.
“In particular, South Africa continues to maintain significant tariff and non-tariff barriers affecting United States trade and investment, including barriers involving agricultural market access, regulatory requirements, investment protections, and intellectual property,” Trump wrote.
Despite the planned withdrawal, Trump indicated that his administration would continue monitoring South Africa’s compliance with AGOA’s eligibility requirements, leaving open the possibility of a reversal should Pretoria address Washington’s concerns.
Significant setback
“I will continue to monitor whether the Government of South Africa is making progress in addressing these concerns and meeting AGOA’s eligibility requirements,” he said.
He added that he hoped the South African government would work closely with his administration to resolve the outstanding issues so that the country could once again qualify for AGOA benefits.
The proposed withdrawal represents another significant setback for trade relations between Pretoria and Washington, with potential consequences for South African exporters who benefit from preferential access to the US market.
AGOA, enacted in 2000, provides eligible sub-Saharan African countries with duty-free access to the US market for thousands of products, supporting exports across sectors including agriculture, manufacturing and automotive production.
South Africa’s continued participation in the programme has been a major point of contention amid deteriorating diplomatic and economic relations between the two countries.
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Compiled by Betha Madhomu
