US President Donald Trump has announced plans to remove South Africa from the African Growth and Opportunity Act (AGOA), a move that could significantly impact thousands of jobs in the country’s agricultural and manufacturing sectors. This decision, set to take effect on January 1, 2027, would end South Africa’s preferential access to the US market provided by the trade programme.
The announcement came on November 2, with US Trade Representative Jamieson Greer confirming that both Congress and the governments of South Africa and Rwanda have been notified about the planned termination of their eligibility under AGOA. The US administration cited concerns over South Africa’s trade and investment barriers, corruption, and policies perceived as contrary to US national security and foreign policy interests.
In response to the impending withdrawal, South Africa’s Trade, Industry and Competition Minister Parks Tau stated that the government would expedite efforts to diversify export markets to safeguard domestic jobs. The government is actively seeking to enhance trade relations with other regions and countries, including Africa, India, China, and the European Union. While recognizing the importance of AGOA, Tau highlighted that it does not form the entirety of South Africa’s economic relationship with the United States. Government data show that in 2025, approximately 89% of South African exports to the US were conducted under standard World Trade Organization terms.
The potential job losses have raised alarms, particularly within South Africa’s agriculture and manufacturing sectors. The Congress of South African Trade Unions (COSATU) warned that the removal of preferential trade access could endanger thousands of livelihoods. Concerns have also been expressed by the country’s citrus industry, which foresees a negative impact on exporters, producers, and workers, especially in the Western Cape and Northern Cape regions.
AGOA, established in 2000, offers eligible African countries duty-free access to the US market for a wide range of products, and South Africa has been a significant beneficiary. While the proposed change will not halt all trade between the two nations, South African exporters may face additional tariffs when their preferential access expires at the end of December 2026.