The move comes despite earlier concerns that South Africa’s Agoa eligibility could come under pressure amid Washington’s increasingly protectionist “America First” trade posture and diplomatic tensions over Pretoria’s foreign policy stance.
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The United States’ decision to extend the African Growth and Opportunity Act (Agoa) trade programme through to the end of 2026 has brought relief to South African exporters and businesses after months of uncertainty over the future of the preferential trade arrangement.
In a proclamation issued by US President Donald Trump, the White House confirmed that duty-free treatment under Agoa for beneficiary sub-Saharan African countries would remain in effect until 31 December 2026.
The extension from the end of September 2026 to end December also includes the continuation of the regional apparel and third-country fabric programmes that are critical to Africa’s textile and clothing industries.
The move comes despite earlier concerns that South Africa’s Agoa eligibility could come under pressure amid Washington’s increasingly protectionist “America First” trade posture and diplomatic tensions over Pretoria’s foreign policy stance.
The Trump administration has also excluded South Africa from attending the G20 meetings, and the G20 Leaders Summit, during the current US presidency cycle due to diplomatic rifts.
Agoa allows qualifying African countries to export thousands of products into the US market duty-free, supporting industries such as automotive manufacturing, agriculture, textiles, mining and processed goods. South Africa is among the largest beneficiaries of the programme.
Amid ongoing discussions about the future of the programme, the Department of Trade, Industry and Competition (the dtic) recently submitted a 12-page response to the Office of the United States Trade Representative (USTR) following calls for proposals on Agoa’s reform and modernisation.
The submission addressed several issues raised by the USTR, including non-tariff barriers, increasing US exports and jobs, reciprocal trade, revised eligibility criteria, critical minerals and the future structure of Agoa.
On reciprocal trade concerns, the dtic acknowledged US criticism over tariff differences between South Africa and the European Union (EU) due to the Economic Partnership Agreement (EPA) between African countries and the EU.
"It should be noted that the EPAs provide duty free quota free access for majority of African countries and provide duty free quota free access on industrial products for South Africa, while most agricultural products can enter the European Union duty free or under tariff-rate quotas," it said.
"Importantly, the implementation of the EPAs has revealed challenges in specific sectors that would need to be addressed in future negotiations with the United States or other countries so as to take into account African countries’ sensitivities."
Trade analysts said the extension provides short-term certainty for exporters, investors and manufacturers who had feared the possible collapse of one of South Africa’s most important trade arrangements.
Trade union Solidarity welcomed the announcement, describing it as a significant gesture of goodwill from Washington that the South African government should not ignore.
According to Theuns du Buisson, economic researcher at the Solidarity Research Institute (SRI), the organisation had actively campaigned for the preservation of Agoa because of its importance to jobs and economic stability.
“The announcement brings great relief. We welcome this decision and see it as a positive step that can promote economic certainty,” Du Buisson said.
He warned that South Africa should avoid policy decisions or diplomatic actions that could undermine relations with the United States.
“This decision shows that there is still room for cooperation and good relations. South Africa should act cautiously to avoid alienating its most important trading partner through unnecessary geopolitical positioning or policy decisions,” he said.
The extension is expected to be particularly important for South Africa’s automotive sector, which exports billions of rand worth of vehicles and components to the US market annually under Agoa preferences.
Agricultural exporters, including citrus, wine and macadamia producers, also stand to benefit from the continued tariff-free access.
Business Unity South Africa (Busa) also weighed in on the debate, saying it understood the USTR’s concerns regarding the US trade deficit with certain African economies.
However, Busa argued that when trade in services and investment income are included, the United States consistently records a substantial surplus with South Africa.
According to Busa, US service exports to South Africa — including intellectual property, telecommunications, financial and business services — reached approximately $3.4 billion in 2024, while income flows from investments averaged more than $1.5bn annually over the past decade.
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