US sets a date for South Africa to lose AGOA trade benefits
PRETORIA — South African exporters will lose preferential access to the US market under the African Growth and Opportunity Act (AGOA) from 1 January 2027. US Trade Representative Jamieson Greer said on 2 November that President Donald Trump had notified Congress and the governments of South Africa and Rwanda of his intention to suspend both countries. South African suppliers can continue selling to American buyers after the suspension, but those sales will no longer qualify for AGOA tariff preferences.
How much South African trade is exposed?
South Africa exported about US$1.7 billion in goods under AGOA in 2025. That represents roughly one dollar in every ten spent on South African goods entering the US, which imported US$16.5 billion from the country that year. The US Trade Representative lists textiles and clothing among the products for which South Africa currently qualifies.
For exporters negotiating orders for 2027, the immediate issue is the price their American customers will pay once the applicable import duty is included. The effect will vary by product. Where losing the preference raises the cost of an order, a US buyer could absorb the difference, seek a lower price from the South African supplier or switch suppliers. The US$1.7 billion measures trade that used AGOA last year. How much of that business exporters retain will depend in part on those decisions.
Why Washington is suspending eligibility
Washington cited barriers to US trade and investment, concerns about corruption and conduct it considers contrary to US national security and foreign policy interests. Greer’s announcement did not identify specific South African measures behind those findings. The US administration said both countries could regain eligibility if they meet the programme’s requirements.
Ahead of the decision, Trade, Industry and Competition Minister Parks Tau said South Africa had made offers to Washington during negotiations over the past year and remained open to talks. His department estimates that AGOA shipments account for about 1% of South Africa’s worldwide exports. For firms that rely on the US preference, the more pressing deadline is the end of December, when their current terms expire.
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