South Africa says it will seek new export markets and continue negotiations with Washington following a United States decision to withdraw its preferential trade benefits under the African Growth and Opportunity Act (AGOA) from 1 January 2027.
The South African government has expressed concern over the United States’ decision to withdraw the country’s benefits under the African Growth and Opportunity Act (AGOA), warning that the move could affect exporters, businesses and thousands of jobs.
In a statement issued on 2 November 2026, the government said Washington had given South Africa 60 days’ notice of its intention to terminate the trade preferences, effective 1 January 2027.
AGOA allows eligible sub-Saharan African countries to export qualifying products to the United States duty-free, giving businesses preferential access to the American market.
South Africa says it is assessing the likely impact of the withdrawal on industries that depend on the arrangement, with support measures being considered for affected companies and workers.
The government said it would continue engaging businesses, workers and other stakeholders to protect jobs and assist industries that could lose their preferential access to the US market.
According to the statement, South Africa has made several concessions during negotiations with Washington, including proposals that go beyond commitments made in 2015.
However, Pretoria expressed frustration that the United States had introduced additional concerns that were not part of the negotiations initiated in 2025.
South Africa maintains that its proposals respect international trade rules, constitutional obligations and measures intended to protect the country’s agricultural and biological resources.
AGOA Exports Fall to $1.7 Billion
Government figures indicate that South Africa’s exports to the United States under AGOA declined from approximately US$4 billion in 2024 to US$1.7 billion in 2025.
The proportion of South African exports entering the American market under AGOA also fell from 28 percent in 2024 to approximately 10 percent in 2025.
About 89 percent of South African exports to the United States entered under ordinary World Trade Organisation most-favoured-nation terms in 2025.
The government said AGOA exports accounted for approximately one percent of South Africa’s total global exports, although the arrangement remains important to companies and workers in the affected sectors.
Bilateral trade between South Africa and the United States reached US$28.8 billion in 2025.
More than 600 American companies operate in South Africa, supporting an estimated 134,600 jobs.
The government also pointed to the importance of South Africa in American supply chains, particularly in the supply of critical minerals.
South Africa supplies 12 of the 50 minerals classified as critical by the United States and accounts for approximately 70 percent of US isotope supplies used in applications including cancer treatment, according to the statement.
South African companies also have investments in the United States, while several manufacturing industries depend on inputs sourced from American businesses.
Pretoria warned that withdrawing AGOA benefits could affect these commercial relationships and existing supply chains.
South Africa Looks to New Export Markets
The government says it will accelerate efforts to reduce dependence on individual export markets by expanding trade with other countries and regional economic blocs.
Under its Industrial Development Strategy and Butterfly Strategy, South Africa is pursuing opportunities within the African Continental Free Trade Area, the Southern African Development Community, India, the European Union, the United Kingdom, China, ASEAN and MERCOSUR.
The government said new market opportunities had already been secured for agricultural products, including citrus fruits, avocados, grapes and apples.
Trade, Industry and Competition Minister Parks Tau said South Africa would continue pursuing a negotiated solution with Washington while protecting the country’s economic interests.
“This decision does not define the broader relationship between South Africa and the United States, however a solution depends on the willingness of both Parties to find solutions,” Tau said.
He added that the government would support affected sectors and continue pursuing trade, investment and shared economic opportunities with the United States.
South Africa maintains that the United States remains an important trade and investment partner despite the dispute.
The government said it would continue seeking a mutually beneficial trading relationship while upholding its constitutional responsibilities and international obligations.
The planned withdrawal comes amid continuing trade negotiations between Pretoria and Washington, with South Africa now preparing industries for the possible loss of preferential access to the American market at the beginning of 2027.
