South Africa remains optimistic about a favourable decision from the United States regarding its inclusion in the African Growth and Opportunity Act (AGOA). The trade deal, which has been extended to December 2028 and is reviewed annually, allows for duty-free trade between the US and eligible African countries. Trade Minister Parks Tau expressed confidence that the US will acknowledge and respond favourably to South Africa's offers during ongoing negotiations.
The US reviews countries' eligibility for AGOA annually, and any removal requires 60 days' notice to Congress and the country concerned. To take effect on January 1, an exclusion must be announced by November 2. South Africa is the largest beneficiary of the scheme, but its eligibility has come under scrutiny due to Washington's criticism of Pretoria. The US has made allegations of discrimination against white Afrikaners in South Africa, which Pretoria rejects.
Relations between the two countries have deteriorated since US President Donald Trump took office. Washington has cut aid and criticised South African President Cyril Ramaphosa over discredited claims of a "white genocide". Despite this, Tau said the government had engaged constructively on all concerns raised by Washington but added that some principles are not up for negotiation.
The US remains a valued partner for South Africa, with over 600 American companies operating in the country and supporting around 134,600 jobs. Tau emphasised that Pretoria remains open to practical arrangements aimed at boosting trade and investment between the two countries. South Africa's economy will remain stable regardless of the outcome, according to Tau, as the country explores other markets.
The US has launched a programme to resettle white Afrikaners who claim to face persecution and violent crime in South Africa. By September 30, the US had admitted 16,287 South Africans under the programme over the preceding year, making them the only people granted refugee status by Washington during that period, apart from five Afghans.
Tau said South Africa is ready for any decision and that the country has made generous offers during negotiations. He added that a favourable decision would be in the best interests of both countries and the African continent. The outcome of the US decision is expected on November 2.
South Africa's trade minister emphasised that the country's economy is diversified and will not be severely impacted by a potential removal from AGOA. The government remains confident in its economic stability and is exploring other markets to maintain trade and investment.
Key points
- South Africa prepares for possible removal from US duty-free trade programme AGOA
- US reviews countries' eligibility for AGOA annually, with decision expected November 2
- South Africa remains confident in economic stability amid US trade deal uncertainty
