Tau Says AGOA Decision Does Not Define SA-US Relationship

Trade, Industry and Competition Minister Parks Tau has said the United States decision to move towards excluding South Africa from the African Growth and Opportunity Act does not define the wider relationship between the two countries.

Tau warned, however, that finding a solution will depend on both sides being willing to engage and work through the issues.

The US has announced plans to suspend South Africa and Rwanda from AGOA benefits from 1 January 2027. Washington cited concerns about practices it says are inconsistent with the programme’s eligibility rules. South Africa has been one of the biggest beneficiaries of the trade arrangement, which allows certain goods to enter the American market duty-free.

AGOA has supported exports such as car parts, wine, citrus and other products. In 2025, South African exports under the programme were valued at about $1.7 billion. This was lower than previous years and made up only around 10 percent of total South African exports to the United States, or about 1 percent of the country’s overall global exports.

Tau stressed that the broader economic relationship remains strong. Bilateral trade between South Africa and the United States reached $28.8 billion in 2025. More than 600 American companies operate in South Africa and support approximately 134,600 jobs.

The minister said the government would support local companies and sectors that may be affected by the loss of preferential access. South Africa would also continue looking for new markets and strengthening existing trade partnerships elsewhere.

Tau noted that South Africa had engaged the United States over the past year and made offers to address concerns. He said it was unfortunate that new issues appeared to have been raised at a late stage.

While AGOA is important, Tau insisted it does not represent the full picture of economic ties between the two countries. He repeated that a lasting solution would require genuine willingness from both Pretoria and Washington to find common ground.

The government has said it remains ready to continue discussions and to protect jobs and businesses that could be impacted by the change.

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