SA government remains confident about Agoa renewal as deadline looms

Trade, Industry and Competition Minister Parks Tau on Tuesday said he remained optimistic about the renewal of the African Growth and Opportunity Act (Agoa), despite uncertainty around its timing and duration.

Agoa provides eligible sub-Saharan African countries with duty-free access to the US market for more than 1 800 products, in addition to the more than 5 000 products that are eligible for duty-free access under the Generalized System of Preferences program.

There has been widespread uncertainty about the continuation of the Agoa after US President Donald Trump imposed hefty tariffs on goods imported to the US, including fruits, wine and other commodities from South Africa.

South Africa has been trying to push the Trump administration to extend the Agoa for another five years when it expires at the end of September 2025, while House Republicans have been trying to pass a law terminating over actions that undermine the US nation security interests. 

Since the State of Israel is being heavily supported by the US in its military action in Palestine, South Africa’s legal action to stop the war in Gaza is interpreted by the US as undermining its national security interest.

Following a recent visit to Washington D.C. and New York, Tau said he observed strong bipartisan support in the US Congress for extending the preferential trade programme, which is set to expire on 30 September 2025.

Tau met with the US Trade Representative and several members of Congress, alongside President Cyril Ramaphosa.

According to Tau, the overall message was that there remains broad support for the renewal of Agoa in Congress across the aisle. However, Tau said questions remained on the period of renewal, the timing of when Agoa will be renewed, and also the legislative vehicle for renewal. 

On the period of renewal for Agoa, Tau said the consensus suggests that Agoa may be renewed for a short-period of between one-to-three years to allow Congress to introduce changes and improvements to the programme.

Tau said the timing of the renewal of Agoa will depended on the legislative vehicle that Congress chooses to renew Agoa. 

Some members of Congress cautioned that Agoa may expire on 30 September 2025, but Tau said efforts will be made to renew Agoa as soon as possible thereafter.

This comes as Congress is currently focused on passing a Continuing Resolution to fund government and avert a shutdown.

Tau said this has delayed discussions on the legislative vehicle for Agoa renewal, which could see the programme extended for between one and three years while lawmakers consider adjustments.

Tau said South Africa, working with other eligible countries through the African Union’s Permanent Mission in Washington, has been lobbying for an urgent renewal. The African Diplomatic Corps recently sent a letter to congressional committees urging swift action.

“South Africa through its Embassy in Washington D.C., supported by the dtic continues to engage with all relevant stakeholders including Congress to advocate for the renewal of Agoa with South Africa retained in the programme,” Tau said.

“Priority is to get Agoa renewed even if it is for a short period to support South Africa’s export to the US.”

According to the US International Trade Commission, bilateral trade between South Africa and the US reached $20.4 billion in 2024. South African exports totaled $14.6bn, with Agoa accounting for $4bn, or 28%, of that figure.

Key exports under Agoa include automotives, ferro-alloys, citrus, jewellery, nuts, chemicals, wines, engines, turbines, ships, and boats.

If Agoa lapses, South Africa’s exports will revert to most-favoured-nation tariffs, although 36% of current exports – including copper, pharmaceuticals, semiconductors, stainless steel scrap, and certain energy products – are already exempt from US unilateral tariffs.

Meanwhile, Minister in the Presidency Khumbudzo Ntshavheni emphasised that while Agoa was important — contributing about 1.3% to South Africa’s agricultural economy — the government was simultaneously working on broader trade agreements with the US.

Ntshavheni said the government’s focus was on implementation rather than drafting new plans.

“The Presidency overall, the National Treasury, and the Department of Trade, Industry and Competition have consolidated proposals across various departments and plans that have been previously adopted. So, there's going to be a plan, but there's not going to be a new plan,” she said.

“It's an implementation of those plans that have already been articulated, adopted in South Africa. And we're prioritizing what are the quick wins, what are the low-hanging fruits, and what is the medium and long-term range of those, and what will be the impact. So, that's what we are focusing on.”

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