South Africa is ready for any decision the US might take on Monday regarding its eligibility for African Growth and Opportunity Act (AGOA) benefits in 2027, Trade, Industry and Competition Minister Parks Tau said on Thursday.
Amid frayed diplomatic relations between the two countries, the US is expected to announce the outcome of its annual review of South Africa’s eligibility for AGOA benefits in 2027 on 2 November 2026. The US has not yet formally finalised or announced South Africa’s continued eligibility because a formal annual review is under way by the Office of the US Trade Representative (USTR).
Tensions have grown between Washington and Pretoria over domestic policies, including land expropriation without compensation legislation and equity laws; the government’s failure to condemn “Kill the Boer” rhetoric; and its failure to prioritise farm and rural safety. The US also wants South Africa to adopt a more non-aligned foreign policy stance.
The US has already backed up its demands with actions that includes visa restrictions on as-yet-unnamed South Africans, the halting of US foreign aid and assistance, a refugee programme for Afrikaners, and the exclusion of South Africa from the US-hosted G20 summit in Florida in December.
However, the US is a major trading partner of South Africa. Bilateral trade reached $28.8 billion in 2025. More than 600 American companies operate in South Africa, supporting about 134 600 jobs. In the past year, more than $5bn in investment commitments were made by US companies, “demonstrating increased investor confidence in SA as an investment destination”, Tau said.
South Africa also supplies 12 of the 50 minerals the US considers critical.
“We are confident the US government will acknowledge, recognise and favourably respond to the very generous offers that SA has made during our ongoing negotiations over the last year or so. This is what is in the best interests of our two nations – the US and SA – as well as partners on the African continent,” Tau said in a statement.
He said the government had engaged constructively on all concerns raised by the US.
“I met with USTR Ambassador Greer last month in Washington DC. Our meeting was preceded by two rounds of discussions at senior officials’ level, where substantial progress on addressing the issues was made. Recently, two rounds of senior officials’ talks were held,” Tau said.
Tau said they had tabled practical proposals through the proper channels, but he did not wish to detail them publicly while engagement continued.
He said some principles, such as transformation and land reform, were not up for negotiation. Within that framework, South Africa had remained open to practical arrangements that would grow trade and investment between the two countries, he added.
In 2025, around 89% of South Africa’s exports to the US entered under ordinary World Trade Organization most-favoured-nation terms. Only about 10% entered under AGOA. AGOA exports, valued at $1.7 billion, made up about 1% of South Africa’s total global exports.
Tau said AGOA reduced the most-favoured-nation tariff in the US, which was generally low.
“The greater pressure on our exporters comes from the Section 232 duties of 25% on autos and 50% on steel and aluminium. Those apply to every US trading partner, not to South Africa alone,” he said.
If US concerns remained, South Africa would have 60 days to address them before any suspension from AGOA, full or partial, took effect.
As part of the government’s preparations for the AGOA decision, an Industrial Development Strategy was being implemented and markets were being opened across the African Continental Free Trade Area, India, SADC, the EU, the UK, ASEAN, MERCOSUR and China.
“We have concluded negotiations with the EU on cumulation to protect hybrid and electric vehicle exports and secured an interim arrangement for steel. New markets have opened for our citrus, avocados, grapes and apples,” Tau said.
In addition, support for business including the Export Help Desk, which was assisting companies in finding new markets, and the Export Marketing and Investment Assistance scheme, which covered 50% of product registration costs in foreign markets, up to R300 000 a year, he said.
Edward.west@nationalmg.co.za
THE NATIONAL