South Africa favors US trade deal extension
South Africa has welcomed the approval of a bill by the US House of Representatives to renew a flagship trade program with qualifying African countries, as ties between Pretoria and Washington remain strained.
The African Growth and Opportunity Act (AGOA), enacted in 2000, grants duty-free access to the US market for eligible sub-Saharan African countries. South Africa has been the biggest beneficiary, especially in automotive and agricultural trade with Washington. The scheme expired in September, with several African governments, including Pretoria, pushing for its renewal amid the Trump administration’s skepticism toward international trade agreements.
On Monday, the House passed legislation enabling a three-year extension of the initiative by a 340–54 vote. The bill now moves to the Senate for approval before being sent to President Donald Trump for signing.
In a statement on Tuesday, South African Trade and Industry Minister Parks Tau said the short-term extension will offer “necessary relief” to companies facing higher costs after Washington imposed new tariffs.
Tau added that Pretoria remains committed to “mature engagement” with Washington regarding trade and investment. He noted that both countries are negotiating an agreement on reciprocal tariffs designed to reduce barriers and stabilize bilateral trade.
Since 2023, US lawmakers have pushed to revoke Pretoria’s AGOA benefits, citing South Africa’s reluctance to align with Washington on key foreign policy issues. Relations between Pretoria and Washington have further deteriorated since Trump returned to office last year, with the president repeatedly accusing the South African government of allowing genocide against its white citizens – allegations that Pretoria has dismissed as misinformation.
In January 2024, the Biden administration removed the Central African Republic, Gabon, Niger, and Uganda from AGOA for alleged non-compliance with participation requirements.
Bilateral trade between the two countries reached $15 billion in 2024, with South Africa recording a $1 billion surplus, the trade ministry reported, citing data from the South African Revenue Service. Exports to the US totaled $8 billion, primarily driven by commodities such as platinum, precious metals, motor vehicles, diamonds, and gold, with shipments in the first nine months of 2025 standing at $5.9 billion, the ministry reported.
