The potential removal of South Africa from the African Growth and Opportunity Act (AGOA) by the Trump administration poses a significant threat to thousands of jobs in the country’s agricultural and manufacturing sectors. Announced on November 2, the decision would terminate South Africa’s preferential access to the US market starting January 1, 2027.
US Trade Representative Jamieson Greer confirmed that President Donald Trump has already notified Congress and the governments of South Africa and Rwanda about this impending change. The administration cited concerns over trade and investment barriers, corruption, and South African policies that are perceived as contrary to US national security and foreign policy interests. Rwanda is also under consideration for removal from AGOA.
Reacting to the announcement, South Africa’s Trade, Industry and Competition Minister Parks Tau emphasized the government’s commitment to diversifying export markets to safeguard domestic employment. The country is actively exploring strengthened trade relations with regions such as Africa, India, China, and the European Union. While AGOA is not the sole foundation of South Africa’s economic ties with the United States, its benefits have been substantial. In 2025, about 89% of South African exports to the US were conducted under standard World Trade Organization terms.
The potential withdrawal from AGOA has raised alarms about job security, with labor federation COSATU warning that the loss of preferential trade access could endanger thousands of livelihoods. The citrus industry, a significant player in South Africa’s economy, expressed concerns about the potential impact on exporters, producers, and workers, especially in the Western Cape and Northern Cape regions.
Since its inception in 2000, AGOA has offered eligible African nations duty-free access to the US market for a wide range of products, with South Africa being one of the major beneficiaries. Despite the proposed decision not ending all trade between the two countries, South African exporters may face increased tariffs once their preferential access concludes at the end of December 2026.