EU envoy’s subtle jab at United States over AGOA

0 Kristian Schmidt. Images: X via Kristian Schmidt (@EUAmbSchmidt) Home » EU envoy’s subtle jab at United States over AGOA

As Washington moves to oust South Africa from AGOA, EU ambassador-designate Kristian Schmidt says trade ties remain strong and reliable.

0 Kristian Schmidt. Images: X via Kristian Schmidt (@EUAmbSchmidt) European Union ambassador-designate to South Africa, Kristian Schmidt, has delivered a subtle diplomatic jab at Washington following the United States’ decision to cut Pretoria from its preferential trade scheme.

Taking to social media platform X on 2 November 2026, Schmidt reassured South African exporters that economic ties with Brussels remained firm.

“For EU-South Africa trade relations, it’s business as usual: balanced, reciprocal, growing, reliable. You’re welcome,” Schmidt posted.

For EU-South Africa trade relations, it’s Business As Usual: Balanced, Reciprocal, Growing, Reliable. You’re welcome. 🇪🇺🫱🏻‍🫲🏾🇿🇦 @the_dtic @DIRCO_ZA @EUinSA @CCordeiro_EU @SADC_News

The incoming envoy’s comments arrived on the same day US Ambassador Leo Brent Bozell III described Washington’s termination of South Africa’s duty-free access under the African Growth and Opportunity Act (AGOA) as a “predictable and preventable outcome“.

US President Donald Trump officially notified President Cyril Ramaphosa of the 1 January 2027 exit date in late October, citing foreign policy friction and trade barriers under Section 104.

Despite the impending loss of AGOA benefits – which cover $1.7 billion (about R28 billion) in preferential shipments – Trade, Industry and Competition Minister Parks Tau stressed that South Africa’s economy remains resilient.

Tau highlighted that 89% of exports to the US already enter under standard World Trade Organization terms.

Agricultural economist Wandile Sihlobo added that affected products face an average Most Favoured Nation tariff of around 3.4%, meaning exclusion is not a catastrophic trade ban.

Schmidt’s reassurance underscores a broader shift in South Africa’s international economic alignment.

Germany recently beat the US to become South Africa’s second-largest bilateral trade partner, while verall goods trade between the EU and South Africa reached €46 billion (about R880 billion) in 2025 under the 2016 EU-SADC Economic Partnership Agreement, further strengthened by the Clean Trade and Investment Partnership signed in November 2025.

Pretoria is also benefiting from broader market diversification.

China, South Africa’s top trading partner with bilateral trade reaching R642 billion in 2025, implemented a 100% zero-tariff preference scheme in May 2026, sparking a 199% surge in customs declarations.

Meanwhile, bilateral trade with the United Kingdom hit £12.6 billion (about R277.1 billion) up to Q4 2025, supporting more than 154 000 local jobs.

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