South Africa is ready for the outcome of the United States’ (US) annual review of its eligibility for African Growth and Opportunity Act (AGOA) benefits, with Trade, Industry and Competition Minister Parks Tau saying the economy will remain stable and exporters will continue trading regardless of the decision.
The US is expected to announce its decision on South Africa’s eligibility for AGOA benefits for 2027 on 2 November 2026.
AGOA provides eligible sub-Saharan African countries with duty-free access to the US market for more than 1 800 products, in addition to the more than 5 000 products eligible for duty-free access under the Generalised System of Preferences programme.
Tau said government stands ready to support the economy, particularly South African businesses and their employees, who form the backbone of communities.
He said government is confident that the US will respond favourably to the offers South Africa has made during negotiations over the past year.
“This is what is in the best interest of our two nations – the US and SA -as well as of partners in the African continent. We remain committed to engagement and our doors remain open for dialogue. Government has engaged constructively on all concerns raised by the United States,” Tau said.
In September, Tau met US Trade Representative Ambassador Jamieson Greer in Washington, DC, to discuss bilateral trade relations and the future of AGOA.
“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,” the Minister said.
Tau reaffirmed that the US remains a valued partner, with bilateral trade reaching $28.8 billion in 2025.
“More than 600 American companies operate here, supporting around 134 600 jobs. In the last year alone, more than $5 Billion investment commitments have been made by US companies, demonstrating increased investor confidence in SA as an investment destination,” the Minister said.
He said South Africa supplies 12 of the 50 minerals the US considers critical and is ready to partner with the US to beneficiate them at source.
“We have tabled practical proposals through the proper channels. It would not be appropriate to set out their detail in public while that engagement continues.
“What I can say is that every proposal respects due process, preserves our constitutional values and imperatives, is aligned with our obligations under World Trade Organization rules and reinforces our duty to protect animal health, local producers and SA consumers,” the Minister said.
Tau reiterated that South Africa remains open to practical arrangements to grow trade and investment between the two countries.
“These matters are best resolved through diplomatic and trade channels, and that is where we will continue to pursue them. If the United States concerns remain, South Africa will have 60 days to address them before any suspension, full or partial, could take effect,” Tau said.
He said South Africa will continue engaging the US to stabilise trade and investment relations while pursuing opportunities in other markets.
“Companies on both sides need a normalised trade environment because of existing value chains in key sectors. We are ready, whatever the decision.
“We are prepared and are implementing our Cabinet-approved Industrial Development Strategy, and through the Butterfly Strategy, we are opening markets across the African Continental Free Trade Area, India, Southern African Development Community (SADC), the European Union (EU), the United Kingdom, Association of Southeast Asian Nations (ASEAN), MERCOSUR [Mercado Común del Sur] 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. – SAnews.gov.za
