The future of South Africa’s participation in the African Growth and Opportunity Act (AGOA) is uncertain following an announcement by former President Donald Trump, which is set to take effect on January 1, 2027. Trump informed South Africa of his intent to terminate its AGOA eligibility due to perceived failures in addressing corruption and trade barriers, along with concerns regarding Pretoria’s foreign policy and security partnerships.
AGOA, which was established in 2000, allows eligible sub-Saharan African countries, including South Africa, preferential access to the U.S. market, helping to promote economic growth through exports. Since its inception, the program has played a critical role in enhancing trade relations between the United States and Africa, with South Africa being a significant beneficiary, particularly in the automotive, agricultural, wine, and manufacturing sectors.
The Trade and Development Act of 2000, signed by President Bill Clinton, aimed to foster U.S.-Africa trade and investment while encouraging market-oriented reforms. Following its establishment, Congress made several amendments during the administrations of George W. Bush, Barack Obama, and Trump, which expanded the program and introduced eligibility reviews to enforce compliance with trade stipulations.
Under Bush’s presidency, AGOA saw key expansions that enhanced market access for African countries, while Obama’s administration renewed the program and initiated stricter eligibility reviews that directly impacted South Africa over restrictions on U.S. poultry, pork, and beef imports. This dispute, which began in 2015, was ultimately resolved in March 2016, allowing South Africa to retain its agricultural benefits.
During Trump’s initial term, he enacted measures against Rwanda’s apparel exports due to trade restrictions. Under President Joe Biden, several countries, including Ethiopia and Mali, were suspended from AGOA for governance-related issues. Biden’s administration continued to uphold annual eligibility reviews, applying pressure that resulted in a significant shift in who benefited from AGOA.
Despite South Africa’s status as AGOA’s largest beneficiary by export value, its exports under the program plummeted from approximately $4 billion in 2024 to $1.7 billion in 2025. This decline highlights ongoing tensions between the nations, which have escalated over various diplomatic disagreements, including issues of affirmative action and foreign policy differences.
In response to Trump’s termination notice, South African officials emphasized intentions to diversify export markets beyond the U.S., targeting opportunities in Africa, India, the European Union, and China. The Trade Minister, Parks Tau, stated that the government is committed to protecting jobs amid the shifting trade landscape prompted by the possible end of preferential tariff access under AGOA.
The U.S. Trade Representative confirmed the termination plans, which would remove preferential tariff access for South African goods, but would not end ordinary trade between the two nations.
