Washington Turns Trade Into Another Weapon Against South Africa

By Staff Reporter

The African Growth and Opportunity Act (AGOA) allows eligible African countries to export many goods to the US without paying import duties. Washington has now given South Africa 60 days’ notice that it intends to withdraw the country from the agreement.

US Trade Representative Jamieson Greer said South Africa had broken the rules for taking part. He pointed to obstacles for American businesses, corruption, and threats to US security and foreign policy interests. He did not give detailed examples.

Trade, Industry and Competition Minister Parks Tau said the decision should not be read as the end of the relationship between the two countries.

“This decision does not define the broader relationship between South Africa and the United States, however, a solution depends on the willingness of both parties to find solutions,” he said.

He promised help for those hurt by the decision. “At the same time, government will support affected sectors, protect South Africa’s national interests and continue pursuing trade, investment and shared economic opportunities with the United States,” Tau said.

He also said South Africa wants a fair deal for both sides, one that includes processing more of its minerals at home before they are sold abroad.

And he made clear there are things Pretoria will not give up. “As a sovereign constitutional democracy, South Africa will uphold its constitutional responsibilities, transformation objectives, and international obligations, while seeking practical solutions to expand trade and investment,” Tau said. In plain terms, South Africa will keep following its own laws and its programmes to fix the unfairness of the past.

Government: the US moved the goalposts

Government says it did more than it had to keep AGOA. It offered extra concessions beyond those agreed in 2015, but says the US then raised new complaints that were never part of the talks that began in 2025.

“It is, however, unfortunate that the US is now raising new issues that have not been the basis for discussions as part of the negotiation process that commenced in 2025,” the government said in a statement.

Washington: “predictable and preventable”

US Ambassador Leo Brent Bozell III put the blame on Pretoria.

“It is regrettable that South African policies led to the termination of AGOA for South Africa. This was a predictable and preventable outcome resulting from the rejection by South Africa’s government of real concerns raised by the US Government,” he said.

He also left the door open. “I remain hopeful that we can find a path forward to address our larger bilateral concerns, but the South African government must understand the gravity of the situation. We know that if America succeeds, so too will South Africa. This is the partnership I will continue to pursue as expeditiously as possible,” Bozell said.

How much does AGOA matter?

Government says AGOA is important, but it is only part of the story. “AGOA still holds significance for South Africa but does not represent the entirety of the economic relationship between the two countries,” its statement said.

Last year, about 89% of South Africa’s exports to the US came in on ordinary terms, not under AGOA. Only about 10% were covered by the deal, down from 28% in 2024. Those goods were worth nearly $ 1.7 billion in 2025, against $ 4 billion the year before. That is roughly 1% of everything South Africa sells to the world.

Trade between the two countries reached $ 28.8 billion last year. More than 600 American companies operate in South Africa and support about 134,600 jobs.

What America gets from South Africa

Government says the US also has plenty to lose. South Africa supplies 12 of the 50 minerals that Washington counts as vital. It also provides 70% of the US supply of the radioactive materials, known as isotopes, that are used to treat cancer.

The trade runs both ways. South Africa buys American parts for goods it builds and sells abroad under AGOA, such as cars and boats. The government warns that South African money invested in the US could also suffer, which could disrupt businesses that depend on each other.

Independent experts say the damage will not be the same for everyone. Eckart Naumann, an independent economist, said the loss “does not spell doom for South Africa”. He noted that gold, platinum and other metals and minerals make up nearly two-thirds of what South Africa sells to America, and they never paid import taxes anyway. Cars, steel and aluminium already face US taxes of 25% to 50%, far more than AGOA ever saved them.

Food sellers will be hit harder. Naumann said South African sorbets, which earned more than $ 33 million in the US last year, will end up with import taxes about 30% higher. Wandile Sihlobo, the president’s envoy on agriculture and land, said some goods that now pay 12.5% will pay about 15.9%. That will make them somewhat less competitive, he said, but South African farmers have beaten higher taxes before.

Anthony Carroll of the Carnegie Endowment for International Peace worries about the wider damage. He said it was wrong to punish businesses and workers who have nothing to do with government policy, and he fears it could hurt dealings in areas such as vital minerals.

Citrus growers are worried

The Citrus Growers’ Association called the decision “a serious blow” and warned that jobs and whole town economies were at stake. Chairman Gerrit van der Merwe said growers cannot easily send their fruit elsewhere, because other countries have different plant-health rules and different tastes. South Africa is the world’s second-biggest citrus exporter, after Spain.

For growers, the problem is not simply finding another buyer. It is finding markets that can absorb their produce without putting existing businesses and jobs at risk.

Government says it understands the worry among workers, exporters, businesses and communities that depend on AGOA trade, and that some will be hit harder than others. It says it is working with the affected industries to find out the full cost.

Looking for new buyers

Government says it will keep pushing hard to find more places to sell South African goods. Its Cabinet-approved Industrial Development Strategy and Butterfly Strategy aim at new opportunities in Africa’s single trading zone, known as the African Continental Free Trade Area, as well as India, southern Africa, the European Union, the United Kingdom, South-East Asia, South America and China.

New markets have already opened for South African citrus, avocados, grapes and apples, the government says.