U.S. Removes South Africa from AGOA: Exploring New Markets in China, the UK, and Africa

November 3, 2026 dailymirror Pretoria – The Department of Trade, Industry and Competition has announced that South Africa is actively pursuing market opportunities within the African Continental Free Trade Area, India, SADC, the European Union, the United Kingdom, ASEAN, MERCOSUR, and China.

These comments came after the United States Government issued a 60-day notice to South Africa regarding the withdrawal of its benefits under the African Growth and Opportunity Act (AGOA).

Launched in 2000, this trade preference program grants duty-free access to the U.S. market for more than 1,800 products from eligible sub-Saharan African countries.

However, tensions between the U.S. and South Africa have recently escalated, particularly following the Trump Administration’s concerns about the country’s expropriation laws and unfounded allegations regarding threats to White farmers.

On November 2, 2026, U.S. Trade Representative Jamieson Greer announced that President Donald Trump had notified Congress and South Africa, along with Rwanda, of a plan to delist them from AGOA.

In a statement to The Bulrushes, the department said: “The South African Government recognizes the U.S. Government’s decision to issue a 60-day notice for the withdrawal of South Africa’s AGOA benefits, effective January 1, 2027.”

“The government is mindful of the potential implications this decision has for workers, exporters, businesses, and communities reliant on AGOA-supported value chains.”

“The impact will differ across sectors, and the government is working closely with affected industries to assess the repercussions and will continue to provide necessary support on an individual basis.”

“As a responsible government, South Africa has proactively implemented measures in response to the Reciprocal Tariffs.”

The department also stated that the South African government will engage in further discussions with social partners to enhance support initiatives aimed at “improving the resilience and sustainability” of productive sectors while diversifying exports and protecting jobs.

In 2025, about 89% of South African exports to the U.S. were imported under standard World Trade Organization most-favored-nation terms, while roughly 10% were under AGOA, a decline from 28% in 2024.

AGOA exports were valued at approximately US$1.7 billion in 2025, down from $4 billion in 2024.

AGOA exports made up around 1% of South Africa’s total global exports.

Bilateral trade reached US$28.8 billion in 2025, with over 600 American companies operating in South Africa, providing around 134,600 jobs.

Trade relations are mutually beneficial and complementary

South Africa supplies 12 of the 50 minerals considered critical by the U.S., produces 70% of U.S. isotopes used for cancer treatments, and exports goods from the U.S. to the U.S. under AGOA, including automobiles and boat manufacturing.

“South African enterprises have also invested in the U.S. economy, and the loss of AGOA will jeopardize these investments and disrupt established value chains,” the department pointed out.

“The government will continue to expedite the diversification of South Africa’s export markets.”

“Through its Cabinet-approved Industrial Development Strategy and Butterfly Strategy, South Africa is exploring market opportunities throughout the African Continental Free Trade Area, India, SADC, the European Union, the United Kingdom, ASEAN, MERCOSUR, and China.”

The department revealed that South Africa has also opened new market avenues for citrus, avocados, grapes, and apples.

In light of the U.S. decision to remove South Africa from AGOA, Trade, Industry and Competition Minister Parks Tau stated: “This decision does not dictate the totality of the relationship between South Africa and the United States; however, arriving at a resolution will require cooperation from both sides.”

“Simultaneously, the government will support affected sectors, safeguard South Africa’s national interests, and continue striving for trade, investment, and shared economic opportunities with the United States.”

Minister Tau emphasized that the U.S. remains a crucial trade and investment partner.

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