Cape Town – South Africa could face another setback in its increasingly strained relationship with the United States, with Washington expected to decide within weeks whether the country will remain eligible for preferential trade benefits under the African Growth and Opportunity Act (AGOA).
According to BusinessTech, trade union Solidarity has warned that the US could announce its 2027 AGOA eligibility decisions as early as November.
Solidarity public liaison Jaco Kleynhans said the recent extension of AGOA to 2028 does not guarantee South Africa’s continued participation because “the White House determines eligibility on an annual basis.”
He warned that “there is a good reason to fear that South Africa will be excluded next year”, citing the potential impact on businesses, trade and jobs.
AGOA, introduced by the US in 2000, provides qualifying sub-Saharan African countries with preferential or duty-free access to the American market for eligible products.
Visa restrictions
South Africa accounted for about 54% of AGOA-related exports to the US over the programme’s lifetime, while roughly R300 billion in goods were exported under the programme between 2019 and 2024.
The possible review comes despite US President Donald Trump signing legislation earlier this month extending AGOA until the end of 2028.
Business Day reported that the extension fell well short of South Africa’s push for a longer-term arrangement and that Pretoria’s eligibility for the next cycle remained uncertain.
The trade uncertainty comes as diplomatic relations between Pretoria and Washington deteriorate.
US Secretary of State Marco Rubio recently announced visa restrictions targeting certain South Africans allegedly involved in policies Washington regards as discriminatory, including aspects of Black Economic Empowerment and land expropriation.
South Africa has rejected the US characterisation of its policies and defended its right to legislate on domestic matters.
Series of escalatory measures
Trade Minister Parks Tau said South Africa remained committed to engagement with Washington despite the latest restrictions.
“We’re really talking to them. We’re really engaging,” Tau said, according to SABC News, adding that he was due to meet US counterparts to discuss trade relations.
The South African government has also welcomed the AGOA extension. According to the South African Government, Cabinet said the extension would provide certainty for local producers and exporters while supporting exports and trade and investment ties with the US.
However, the looming eligibility decision adds another layer of uncertainty for South African exporters, particularly in sectors such as agriculture, automotive manufacturing and chemicals.
The latest developments come after US Ambassador to South Africa Leo Brent Bozell warned that Washington’s recent visa restrictions were “only the first step in a series of escalatory measures”, raising concerns that trade policy could become another pressure point in the deteriorating bilateral relationship.
Follow African Insider on Facebook, X and Instagram
Picture: Facebook / Presidency
For more African news, visit Africaninsider.com
Compiled by Betha Madhomu
