The Trump administration has announced plans to terminate South Africa’s participation in the African Growth and Opportunity Act (AGOA), a move that could significantly impact the country’s agricultural and manufacturing sectors. This decision, set to take effect on January 1, 2027, will end South Africa’s preferential access to the U.S. market under the trade program, potentially threatening thousands of jobs.
On November 2, U.S. Trade Representative Jamieson Greer confirmed that President Donald Trump had formally notified Congress and the governments of South Africa and Rwanda about the planned termination of their eligibility. The administration cited concerns about trade and investment barriers, corruption, and policies deemed contrary to U.S. national security and foreign policy interests as reasons for the decision. Rwanda faces a similar removal from the program.
In response, South Africa’s Trade, Industry, and Competition Minister Parks Tau emphasized the government’s commitment to diversifying export markets to mitigate potential job losses. Efforts are underway to strengthen trade relations with other regions and countries, including Africa, India, China, and the European Union. Tau noted that while AGOA is an important trade arrangement, it is not the foundation of South Africa’s entire economic relationship with the United States.
The proposed withdrawal from AGOA has raised alarms about possible job losses, particularly in the agriculture and manufacturing sectors. The labour federation COSATU warned of significant threats to livelihoods, while South Africa’s citrus industry expressed concerns over the impact on exporters, agricultural producers, and workers, especially in the Western Cape and Northern Cape.
Established in 2000, AGOA provides eligible African countries with duty-free access to the U.S. market for thousands of products, with South Africa being one of its major beneficiaries. Although the decision will not halt all trade between the two nations, South African exporters will likely face additional tariffs once their preferential access ends in December 2026.