SA dangles chicken and pork concessions to the US for Agoa continuation
Minister of Trade, Industry and Competition Parks Tau says South Africa has made “generous offers” to the US in a bid to continue its trade relationship with the world’s largest economy under the African Growth and Opportunity Act (Agoa).
Introduced by the US Congress in 2000, Agoa gives eligible African countries duty-free access to the US market for certain exports.
Since then, the programme has supported trade between Pretoria and the US, which remains a significant source of foreign direct investment for South Africa.
Speaking at a press briefing on Thursday, Tau was coy and reluctant to be drawn into the specific terms of SA’s offers to the US, saying only that they were in line with “our constitutional values and World Trade Organisation rules”.
He was speaking at a meeting of the National Economic Development and Labour Council (Nedlac), where representatives of government, business, labour and community organisations come together to negotiate the country’s economic, labour and development policy.
The partners are charting a way forward amid concerns that SA could be excluded from Agoa, with the eligibility review outcome from the US expected on 2 November.
South Africa exports vehicles, jewellery, ferroalloys, fruit and nuts, beverages and spirits to the US under Agoa.
The US, meanwhile, exports products including pork and poultry to South Africa – products that have become a negotiating tool and major point of contention in the ongoing negotiations between both nations.
Tau confirmed that SA’s offers relate to market access for poultry and pork. “The trade matters relate to pork and poultry and market access,” he said.
He explained that, as in any negotiation, countries need market access and animal health is important, including which parts can enter the country.
Issues around the treatment of some products would affect the outcome of the negotiations, he said.
Tau said South Africa had “made a set of offers” and met US officials in September 2026, but declined to disclose further details.
“We are awaiting a formal response [from the US] to the offer,” he said.
South Africa is however not prepared to make concessions to the US on various constitutional imperatives.
“There are non-negotiables in our negotiations. [Racial] transformation [imperatives] is a constitutional imperative and land reform operates within the Constitution. South Africa is open to practical engagements. These matters are best resolved through diplomatic and trade channels,” he said.
Read: Tau upbeat about Agoa’s continuation
The concern among the Nedlac partners around Agoa comes at a time when diplomatic tensions between Washington and Pretoria have intensified under US President Donald Trump’s administration, which claims that SA’s land policies discriminate against white people – a claim Pretoria rejects.
Agoa has been renewed twice since its introduction in 2000. The programme expired in September 2025 but was retroactively extended for one year in February 2026.
The US Congress has the final say on Agoa’s reauthorisation.
Under the notification process described in the programme, removing a country requires 60 days’ notice to Congress and the country concerned. For SA’s exclusion to take effect on 1 January, a decision would need to be announced by 2 November.
Tau recognises that Agoa has been good for South Africa.
An estimated 31% of South African exports to the US received duty-free access under the programme, amounting to $2.7 billion in 2021 and slightly more in subsequent years.
While Tau hopes South Africa will retain its Agoa benefits, he said the country must also strengthen existing trade relationships and develop new markets, particularly elsewhere in Africa.
He pointed to the African Continental Free Trade Area (AfCFTA), which aims to create a single continental market and progressively reduce tariffs on goods traded between African countries.
Tau confirmed that his department is also exploring trade agreements with countries in the European Union, Asia, Canada, India and the Middle East.
“Diversification is not a rejection of the US. South Africa will be ready whatever is decided by the US. Our door to the US is open and our economy is resilient,” he said.
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Reported by moneyweb.co.za.
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