Staff Reporter
South Africa has accused the United States of introducing new demands into trade negotiations after President Donald Trump’s administration on Monday announced plans to withdraw the country’s preferential access to the American market from 1 January 2027.
The decision follows a US government review that found South Africa and Rwanda were engaging in practices inconsistent with the African Growth and Opportunity Act (AGOA) eligibility requirements.
“These concerning and pervasive practices include, but are not limited to, barriers that undermine American trade and investment and practices that pose a threat to U.S. national security and foreign policy interests in the region,” US Trade Representative Jamieson Greer said, referring to both countries.
In its statement, the Office of the United States Trade Representative said: “In South Africa, the Trump Administration is deeply concerned by barriers to U.S. trade and investment, corruption, and threats to U.S. national security and foreign policy interests,”
In a statement issued late on Monday, the Department of Trade, Industry and Competition (dtic) said government had already offered Washington additional concessions and was concerned that the US was now raising issues that had not formed part of negotiations since they began in 2025.
AGOA was established in 2000 to promote trade and economic development in sub-Saharan Africa. It allows eligible countries to export thousands of products to the US duty-free, provided they meet certain economic, political and governance requirements.
Greer said that Trump had notified Congress and the governments of South Africa and Rwanda of his intention to remove both countries from the programme.
The South African government, responding to the 60-day notice, said it had made extensive efforts to address Washington’s concerns while protecting its constitutional responsibilities and international trade obligations.
It said its proposals went beyond concessions made during a previous trade dispute in 2015 and had been submitted through established negotiating channels.
The government said that the concessions respected South Africa’s biosecurity requirements, constitutional obligations and commitments under World Trade Organisation rules.
South African exports entering the US under AGOA declined from about $4 billion in 2024 to $1.7 billion in 2025, according to the dtic.
The share of exports receiving AGOA preferences fell from 28% to about 10% over the same period, while about 89% of South African exports to the US entered under ordinary World Trade Organisation most-favoured-nation terms in 2025.
The department said AGOA exports represented about 1% of South Africa’s total exports worldwide.
It said the impact would vary between industries and that it was assessing the consequences with affected businesses. It also pledged to provide support on a company-by-company basis and continue measures introduced in response to American reciprocal tariffs.
Dtic Minister Parks Tau said South Africa remained willing to negotiate but added that any agreement would require cooperation from Washington.
“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. 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.”
Greer’s announcement did not set out specific conditions South Africa would have to meet to retain its eligibility, although he said Washington was working to ensure its African partners complied with the programme’s requirements.
Taking to X after the announcement, the US ambassador to South Africa, Leo Brent Bozell said: “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 U.S. Government.
“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.”
South Africa has sought to emphasise the wider economic relationship between the two countries.
According to the dtic, bilateral trade reached $28.8 billion in 2025, while more than 600 American companies operating in South Africa supported about 134,600 jobs.
It said South Africa supplied 12 minerals considered critical by the United States, as well as isotopes used in cancer treatment, and warned that losing AGOA benefits could disrupt established manufacturing supply chains and South African investments in the American economy.
The government said it would accelerate efforts to diversify exports through markets including the European Union, China, India, the United Kingdom and other African countries.
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