South African exporters face renewed uncertainty after the US House of Representatives approved a short-term extension of the African Growth and Opportunity Act (Agoa) without explicitly retaining South Africa – a move that threatens billions of rand in trade, thousands of jobs and long-standing supply chains despite government efforts to stabilise relations with Washington.
Meanwhile, trade, industry and competition minister Parks Tau welcomed the approval of the extension bill by the US House of Representatives on Monday.
The bill proposed an extension of Agoa until December 2028.
Tau said while South Africa, with other Agoa-eligible countries, had been advocating for a long-term renewal of Agoa with all countries retained in the programme, the current renewal, while short, provides the necessary relief to companies in the context of the tariffs implemented by the US.
“This will provide certainty and predictability for African and American businesses that rely on the programme,” Tau said.
The House approved the extension by a vote of 340 to 54.
The bill will proceed to the Senate for consideration and approval before it is sent to US President Donald Trump for approval.
The bill was first enacted in 2000 to provide duty-free access to the US market for eligible sub-Saharan countries and products.
“The renewal of Agoa will complement and support the implementation of the Africa Continental Free Trade Area and creation of regional value chains, as well as support American businesses that depend on inputs and products imported into the US market under Agoa,” Tau said.
The minister emphasised that South Africa values its longstanding trade and investment relationship with the US, which is the third largest export destination in the world and a critical partner in driving mutually beneficial economic growth, industrialisation and job creation.
“Agoa has been important in this partnership for over two decades, supporting thousands of jobs in both countries and contributing to stable supply chains across key sectors, notably in automotive, shipbuilding, agriculture, chemicals and apparel.”
Tau added that the country was committed to a mature engagement regarding matters of mutual concern, ensuring that we are able to reach both countries’ shared economic goals.
However, the bill passed on Monday contains no language regarding South Africa, despite the country being one of the largest beneficiaries of the almost 26-year-old trade arrangement.
The agreement officially expired at the end of September 2025.
South Africa’s exclusion from the draft has raised red flags within government and industry circles, particularly as the US has increasingly criticised what it views as “tariff and non-tariff barriers” affecting market access for American goods.
US trade representative Jamieson Greer recently told a Senate subcommittee that South Africa was a “unique problem” for US trade officials. Responding to Republican Senator John Kennedy, Greer said South Africa had failed to respond adequately to many US proposals and continued to maintain restrictive trade practices.
“If they ever want to have a better tariff situation with us, they need to take care of the tariffs and non-tariff barriers,” Greer said. He added he was “happy to consider” removing the country from Agoa altogether.
In August, the US imposed 30% “reciprocal” tariffs on key South African exports, including citrus, steel and wine. The tariffs followed many unacknowledged trade proposals sent by South African officials to their US counterparts.
However, months later, certain citrus products were exempted from the tariffs.
According to the South African Revenue Services data, SA-US total bilateral trade was $15bn (about R246.15bn) in 2024, with South Africa’s exports at $8bn and imports at $7bn, resulting in a trade surplus of $1bn, dominated by South Africa’s exports of commodities.
Tau said SA and the US continue to engage with each other in the negotiation of an agreement on reciprocal tariffs aimed at promoting mutually beneficial trade and investment relations and addressing trade barriers that affect bilateral trade.
- Additional Reporting by Business Day
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