US President Donald Trump sent a letter tp President Cyril Ramaphosa in October informing him of the decision.
Trade, Industry and Competition Minister Parks Tau. Picture: Daniel Garzon/Anadolu Agency/Getty Images
The South African government has pushed back against Washington’s decision to terminate the country’s benefits under the African Growth and Opportunity Act (Agoa), arguing that it made extensive efforts to address US concerns and accusing the United States of introducing new issues despite ongoing negotiations.
US Trade Representative Ambassador Jamieson Greer on Monday announced that South Africa and Rwanda would be excluded from the duty-free trade programme from 1 January 2027, citing practices deemed inconsistent with Agoa’s eligibility requirements.
Trump letter to Ramaphosa
The decision follows a letter US President Donald Trump sent to President Cyril Ramaphosa in October, in which he accused Pretoria of failing to meet key Agoa requirements.
Trump said South Africa no longer meets the programme’s eligibility criteria, citing concerns over corruption, market access, and barriers to US trade and investment.
“The Government of South Africa has not established, or is not making continual progress toward establishing, a system to combat corruption and bribery or the elimination of barriers to United States trade and investment,” he said.
Accusations
Trump also accused South Africa of maintaining trade restrictions that negatively affect American businesses.
“South Africa continues to maintain significant tariff and non-tariff barriers affecting United States trade and investment, including barriers involving agricultural market access, regulatory requirements, investment protections, and intellectual property,” he said.
He further raised concerns about South Africa’s foreign policy stance, warning that its relations with certain countries could undermine “United States national security and foreign policy”.
Door open
Despite the decision, Trump left the door open for South Africa to regain Agoa benefits if it addresses Washington’s concerns.
“I will continue to monitor whether the Government of South Africa is making progress in addressing these concerns and meeting Agoa’s eligibility requirements,” he said.
“It is my hope that your government will work closely with my administration to address these issues so that South Africa can once again become eligible for Agoa benefits.”
The US’ decision could affect exporters, businesses and workers linked to Agoa-supported industries.
Concern
Government acknowledged the concern the decision would cause and said it was working closely with affected sectors to assess the fallout and protect jobs.
“Government recognises the concern that this decision may create for workers, exporters, businesses and communities linked to Agoa-supported value chains,” said the Department of Trade, Industry and Competition.
The DTIC said the government had gone beyond the concessions offered in 2015 to preserve preferential access to the US market.
“Government has put extensive efforts to constructively respond to the US concerns and has tabled beyond the 2015 concessions, additional concessions through the appropriate channels.”
Frustration
However, the DTIC expressed frustration over Washington’s latest position.
“It is, however, unfortunate that the US is now raising new issues that have not been the basis for discussions as part of the negotiations process that commenced in 2025.”
Despite the setback, the government sought to reassure investors and businesses that Agoa represents only a small portion of South Africa’s overall trade.
According to the DTIC, about 89% of South African exports to the US entered the market under normal World Trade Organisation rules in 2025, while Agoa exports accounted for roughly 10% of exports to the US and about 1% of South Africa’s total global exports.
US-SA relations
Trade, Industry and Competition Minister Parks Tau said the decision should not define relations between the two countries.
“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 the government would continue supporting affected sectors, protecting jobs, and expanding export opportunities in markets across Africa, Europe, Asia, and Latin America as it works to reduce the impact of losing Agoa benefits.
Regrettable
US Ambassador to South Africa Leo Brent Bozell III says South Africa’s removal was a “predictable and preventable” consequence of government policies, accusing Pretoria of failing to address concerns raised by Washington and warning that it must recognise the gravity of the situation.
Bozell said the decision to exclude South Africa was “regrettable.”
