AGOA trade benefits hang in balance as SA awaits US decision
South Africa faces a critical test in its relationship with Washington as the Trump administration was expected to announce whether Pretoria would retain preferential trade benefits under the African Growth and Opportunity Act (AGOA) for 2027.
The decision, expected as early as today, could jeopardise billions of rand in duty-free exports to the United States, with concerns mounting over the future of jobs in the automotive and agricultural sectors.
Trade Industry and Competition Minister Parks Tau earlier indicated says South Africa was prepared for any outcome.
The Congress of South African Trade Unions (Cosatu) expressed fears that exclusion was increasingly likely.
The decision would land amid strained diplomatic relations, with the Trump administration raising objections to South Africa’s domestic policies and international positions.
Pretoria has been negotiating with Washington to preserve its duty-free access to the American market, with minister Tau meeting US Trade Representative Jamieson Greer in Washington this September.
Approximately $1.7 billion in South African exports benefited from AGOA last year.
Exclusion would remove preferential access for qualifying products, potentially affecting jobs and investment.
Any suspension would not take effect immediately, with South Africa afforded sixty days to address American concerns.