US Moves To End South Africa’s AGOA Benefits From January 2027
The United States has notified Congress and the South African government of its intention to terminate South Africa’s participation in the African Growth and Opportunity Act (AGOA) from 1 January 2027.
US Trade Representative Ambassador Jamieson Greer announced the decision today, Monday, saying President Donald Trump had made the move following an annual review of countries eligible for the preferential trade programme.
Greer said South Africa and Rwanda were engaging in practices inconsistent with AGOA’s eligibility requirements. In South Africa’s case, the US cited barriers to American trade and investment, corruption, and concerns relating to national security and foreign policy.
AGOA, introduced in 2000, provides eligible African countries with duty-free access to the US market for thousands of products. South Africa has been one of its biggest beneficiaries, exporting approximately $1.7 billion worth of goods under the programme in 2025, including vehicles, agricultural products, jewellery and ferroalloys.
The move comes despite Congress extending AGOA until the end of 2028. However, individual countries remain subject to annual eligibility reviews and can lose their benefits.
Relations between Washington and Pretoria have deteriorated under the Trump administration, with disagreements over trade, South Africa’s case against Israel at the International Court of Justice (ICJ), and US allegations about the treatment of white Afrikaners, which the South African government has rejected.
President Cyril Ramaphosa has previously warned that losing AGOA benefits could have a devastating impact on jobs, while urging South Africa to diversify its export markets.
South African trade officials have maintained that the economy can withstand the potential loss, noting that AGOA-covered exports account for about 10% of the country’s exports to the US and roughly 1% of its total global exports.
If implemented, the decision would end preferential access for qualifying South African goods from January 2027, exposing them to standard US tariffs and potentially affecting key export industries.
