By Thebe Mabanga
Trade, Industry and Competition Minister Parks Tau expressed confidence that the African Growth and Opportunity Act (AGOA), which is due to expire on Tuesday, will be renewed with South Africa retained as part of the programme, arguing that it enjoys bipartisan support in the United States Congress.
Tau has had extensive engagements with American senior trade representatives, Members of Congress and business leaders in Washington and New York, where he supported President Cyril Ramaphosa ahead of the 80th United Nations General Assembly and the SA US Trade and Investment Dialogue.
“The overall message was that there remains broad support for the renewal of AGOA in Congress across the aisle,” Tau said on a statement.
“However, questions remained on the period of renewal, the timing of when AGOA will be renewed, and also the legislative vehicle for renewal.”
Tau said AGOA may be renewed for a short-period of between one and three years “to allow Congress to introduce changes and improvements to the programme.”
South Africa’s mission in Washington is led by for Trade and Industry director general Dr. Allistair Ruiters and Tau said South Africa is also working through the African Union permanent mission.
Alongside the renewal of AGOA, South Africa is also weighing the United States’ response to its trade deal proposal aimed at addressing the 30% tariffs.
The matter is expected to go before Cabinet ahead of formal negotiations with Washington.
According to data from the US International Trade Commission, total SA-US bilateral trade reached $20.4 billion in 2024, with South African exports at $14.6 billion and imports at $5.8 billion.
AGOA, including the Generalized System of Preferences, accounted for 28% of South Africa’s exports to the United States—around $4 billion—while 72% fell under the Most Favoured Nation (MFN) regime.
The US remains South Africa’s third-largest export market, making up 8% of total exports, behind China and the European Union.
With AGOA unlikely to be renewed by the end of September, South African exports face being subjected to MFN tariffs, along with unilateral “Liberation Day Tariffs” of 30%.
The latter effectively renders AGOA benefits null.
Currently, about 36% of South Africa’s exports are exempt from the 30% tariff, including copper, pharmaceuticals, certain critical minerals, stainless steel scrap, and energy products.
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