The South African government has expressed concern over the United States' decision to withdraw its preferential trade benefits under the African Growth and Opportunity Act (AGOA) from January 1, 2027. The move could affect exporters, businesses, and thousands of jobs. Washington gave South Africa 60 days' notice of its intention to terminate the trade preferences. AGOA allows eligible sub-Saharan African countries to export qualifying products to the US duty-free.
South Africa is assessing the likely impact of the withdrawal on industries that depend on the arrangement, with support measures being considered for affected companies and workers. The government will continue engaging businesses, workers, and other stakeholders to protect jobs and assist industries that could lose their preferential access to the US market. South Africa made several concessions during negotiations with Washington, including proposals that go beyond commitments made in 2015.
However, Pretoria expressed frustration that the US introduced additional concerns not part of the negotiations initiated in 2025. South Africa maintains that its proposals respect international trade rules, constitutional obligations, and measures intended to protect the country's agricultural and biological resources. Government figures indicate that South Africa's exports to the US under AGOA declined from approximately $4 billion in 2024 to $1.7 billion in 2025.
The proportion of South African exports entering the American market under AGOA also fell from 28 percent in 2024 to approximately 10 percent in 2025. About 89 percent of South African exports to the US entered under ordinary World Trade Organisation most-favoured-nation terms in 2025. AGOA exports accounted for approximately one percent of South Africa's total global exports, although the arrangement remains important to companies and workers in the affected sectors.
Bilateral trade between South Africa and the US reached $28.8 billion in 2025. More than 600 American companies operate in South Africa, supporting an estimated 134,600 jobs. The government pointed to the importance of South Africa in American supply chains, particularly in the supply of critical minerals. South Africa supplies 12 of the 50 minerals classified as critical by the US and accounts for approximately 70 percent of US isotope supplies used in applications including cancer treatment.
South African companies also have investments in the US, while several manufacturing industries depend on inputs sourced from American businesses. Pretoria warned that withdrawing AGOA benefits could affect these commercial relationships and existing supply chains. The government will accelerate efforts to reduce dependence on individual export markets by expanding trade with other countries and regional economic blocs.
Under its Industrial Development Strategy and Butterfly Strategy, South Africa is pursuing opportunities within the African Continental Free Trade Area, the Southern African Development Community, India, the European Union, the UK, China, ASEAN, and MERCOSUR. Trade, Industry and Competition Minister Parks Tau said South Africa would continue pursuing a negotiated solution with Washington while protecting the country's economic interests.
Key points
- South Africa will seek new export markets and continue negotiations with the US following the withdrawal of AGOA trade benefits.
- The withdrawal of AGOA benefits could affect thousands of jobs and existing supply chains between South Africa and the US.
- South Africa supplies 12 of the 50 minerals classified as critical by the US and accounts for approximately 70 percent of US isotope supplies.
