South Africa’s Trade Minister Parks Tau announced on Monday that the United States is introducing “new issues” amid ongoing trade discussions, despite Pretoria offering additional concessions. This situation arises as South Africa is excluded from a U.S.-Africa trade agreement aimed at providing duty-free access to American markets.
The exclusion affects not only South Africa but also Rwanda, raising concerns for exporters who rely on the African Growth and Opportunity Act (AGOA) for preferential market access to the U.S.
South Africa, the largest beneficiary of AGOA, faces scrutiny over its eligibility as Washington increases criticism of Pretoria. Allegations include unfounded claims of discrimination against white Afrikaners, which the South African government has denied. Washington’s concerns reportedly include barriers to U.S. trade and investment in South Africa, corruption, and risks to national security and foreign policy interests.
In response, Minister Tau stated that the recent issues raised by the U.S. were not part of prior negotiations that began in 2025. “It is, however, unfortunate that the U.S. is now raising new issues that have not been the basis for discussions,” he said in a statement.
Tau acknowledged the potential negative impacts on workers, exporters, and businesses, assuring that the government would support those affected. “AGOA remains important to South Africa, but it does not constitute the totality of the economic relationship between South Africa and the United States,” he added.
Statistics indicate that only around 10 percent of South African exports to the U.S. utilized AGOA in 2025, a significant drop from 28 percent in the previous year. The program mainly facilitates duty-free access for South African vehicles, which are the country’s second-largest export to the United States, following precious metals, according to the South African Revenue Service.
The ongoing discussions and implications for AGOA will be closely monitored as South Africa navigates its trade relationship with the U.S.
