South African Trade and Industry Minister Parks Tau has stated that the country has done everything possible to ensure the US government extends the benefits associated with the African Growth and Opportunity Act (Agoa) in 2027. The US is set to announce its decision on South Africa's eligibility for Agoa benefits on Monday. Agoa allows eligible African manufacturers to regain duty-free access to the US market for selected products.
The US government's decision on Agoa benefits comes after a one-year extension was approved by President Donald Trump in February. This decision provided temporary relief to African exporters but cast doubt on the long-term prospects of the 25-year-old trade preference programme. Bilateral trade between the US and South Africa reached $28.8bn in 2025, with over 600 American companies operating in the country and supporting around 134,600 jobs.
According to Minister Tau, the US remains a valued partner for South Africa, with over $5bn in investment commitments made by US companies in the last year alone. He also highlighted that South Africa supplies 12 of the 50 minerals considered critical by the US and expressed readiness to partner on beneficiating them at source. The government is confident that the US will favourably respond to the offers made during ongoing negotiations.
Minister Tau addressed the National Economic Development and Labour Council about Agoa, stating that the government had engaged constructively on all concerns raised by the US. He also mentioned that negotiations with the EU on cumulation to protect hybrid and electric vehicle exports have been concluded, and an interim arrangement for steel has been secured. New markets have opened for South African citrus, avocados, grapes, and apples.
Despite US Ambassador Leo Brent Bozell III's recent comments expressing frustration with South Africa over trade, land expropriation, foreign policy, and bilateral relations, Minister Tau emphasized that South Africa remains committed to engagement and that "our doors remain open for dialogue". The government's relations with the US deteriorated sharply amid allegations of "white genocide" in South Africa, which the government strongly rejected.
Minister Tau met US Trade Representative Jamieson Greer in Washington DC last month, preceded by two rounds of discussions at senior officials' level. He stated that practical proposals have been tabled through proper channels to address US concerns, while respecting due process, preserving constitutional values, and aligning with World Trade Organisation rules.
Minister Tau concluded by stating that South Africa will be ready regardless of the US decision on Agoa benefits, with the economy remaining stable, exporters continuing to trade, and the government standing ready to support the business community. The government is also opening markets across the African Continental Free Trade Area, India, Southern African Development Community, the EU, the UK, and other regions.
Key points
- The US is set to announce its decision on South Africa's eligibility for Agoa benefits on Monday.
- Bilateral trade between the US and South Africa reached $28.8bn in 2025.
- South Africa supplies 12 of the 50 minerals considered critical by the US.
