The South African Government has noted the decision by the United States to give South Africa 60 days' advance notice of its intention to withdraw the country's benefits under the African Growth and Opportunity Act (AGOA), effective 1 January 2027.
In a media statement released on 2 November 2026, government acknowledged the concern the decision may create for workers, exporters, businesses and communities linked to AGOA-supported value chains. It emphasised that the impact will differ across sectors and confirmed it is working closely with affected industries to assess the implications. Support will continue to be provided on a company-to-company basis.
Support measures and engagement with stakeholders
Government stated that, as a responsible administration, South Africa has proactively retained measures introduced in response to reciprocal tariffs. It will undertake further engagements with social partners to strengthen support aimed at improving the resilience and sustainability of productive sectors, while diversifying exports and protecting jobs.
South Africa's response to US concerns
South Africa said it has made extensive efforts to respond constructively to US concerns. Beyond the 2015 concessions, additional concessions were tabled through the appropriate channels. These concessions respect due process, safeguard South Africa's biosecurity and constitutional imperatives, and uphold its obligations under World Trade Organisation rules. The government expressed regret that the United States is now raising new issues that were not part of the negotiations process that began in 2025.
AGOA's role in broader trade relations
Minister of Trade, Industry and Competition Parks Tau underlined that AGOA remains important to South Africa but does not constitute the totality of the economic relationship with the United States. In 2025, approximately 89% of South African exports to the United States entered under ordinary World Trade Organisation most-favoured-nation terms, while about 10% entered under AGOA – down from 28% in 2024. AGOA exports were valued at approximately US$1.7 billion (R28.3 billion) in 2025, down from US$4 billion (R66.6 billion) in 2024, and represented about 1% of South Africa's total global exports.
Bilateral trade and investment ties
Bilateral trade reached US$28.8 billion (R480 billion) in 2025. More than 600 American companies operate in South Africa, supporting around 134 600 jobs. Trade relations are complementary and mutually beneficial. South Africa supplies 12 of the 50 minerals regarded as critical by the United States and provides 70% of the US isotopes used, among other applications, in cancer treatments.
South Africa also sources inputs from the United States for goods manufactured for export to the US under AGOA, including in the automotive and boat-building sectors. South African companies are invested in the US economy, and the loss of AGOA would undermine these investments and negatively affect existing value chains.
Diversification of export markets
Government confirmed it will continue to accelerate the diversification of South Africa's export markets. Through its Cabinet-approved Industrial Development Strategy and Butterfly Strategy, South Africa is pursuing opportunities across the African Continental Free Trade Area, India, SADC, the European Union, the United Kingdom, ASEAN, MERCOSUR and China. New market opportunities have already been secured for South African citrus, avocados, grapes and apples.
Minister Tau on the way forward
Minister Tau said: “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. At the same time, government will support affected sectors, protect South Africa's national interests and continue pursuing trade, investment and shared economic opportunities with the United States.”
The United States remains an important trade and investment partner. South Africa remains committed to a balanced and mutually beneficial partnership with the US that enables preferential trade supporting the beneficiation of critical minerals at source and promoting investment. As a sovereign constitutional democracy, South Africa will continue to uphold its constitutional responsibilities, transformation objectives and international obligations while pursuing practical solutions that expand trade and investment.