SOUTH AFRICA RESPONDS TO TRUMP’S AGOA DECISION: GOVERNMENT SAYS ONLY ABOUT 10% OF ITS US EXPORTS USED THE TRADE BENEFITS AS IT PREPARES TO PROTECT JOBS AND BUSINESSES!
The South African government has officially responded to the United States’ decision to withdraw South Africa’s benefits under the African Growth and Opportunity Act (AGOA), warning that the move could affect workers, exporters, businesses and communities linked to industries that benefited from the trade arrangement.
In a media statement dated 2 November 2026, the government confirmed that Washington had given South Africa 60 days’ advance notice of its intention to withdraw the benefits, effective 1 January 2027.
However, Pretoria has pointed out that AGOA does not account for the majority of South Africa’s exports to the United States.
According to the government, approximately 89% of South African exports to the US entered under ordinary World Trade Organisation most-favoured-nation terms in 2025. Around 10% entered under AGOA, compared with 28% in 2024.
The value of South Africa’s AGOA exports also declined from approximately US$4 billion in 2024 to US$1.7 billion in 2025, representing about 1% of the country’s total global exports.
Despite this, government says the withdrawal could still disrupt important industries and existing supply chains.
The statement also revealed that bilateral trade between South Africa and the United States reached US$28.8 billion in 2025, while more than 600 American companies operating in South Africa support approximately 134,600 jobs.
Trade and Industry Minister Parks Tau said the decision does not define the broader relationship between the two countries, adding that finding a solution depends on both governments being willing to engage.
South Africa says it made additional concessions in response to American concerns but argues that Washington has now raised new issues that were not part of the negotiations that began in 2025.
Government says it will support affected industries, protect jobs and accelerate efforts to find alternative export markets, including opportunities in Africa, India, Europe, the United Kingdom, China and other regions.
The message from Pretoria is that losing AGOA benefits would be a setback, but it does not mean an end to trade between South Africa and the United States.