{"id":882512,"date":"2026-11-03T10:40:38","date_gmt":"2026-11-03T08:40:38","guid":{"rendered":"https:\/\/businesstech.co.za\/news\/?p=882512"},"modified":"2026-11-03T10:40:41","modified_gmt":"2026-11-03T08:40:41","slug":"south-africa-responds-to-being-expelled-from-agoa","status":"publish","type":"post","link":"https:\/\/businesstech.co.za\/news\/trending\/882512\/south-africa-responds-to-being-expelled-from-agoa\/","title":{"rendered":"South Africa responds to being expelled from AGOA"},"content":{"rendered":"\n<p>Trade and Industry Minister Parks Tau says the imminent expulsion of South Africa from the African Growth and Opportunity Act (AGOA) does not mark the end of trade with the United States.<\/p>\n\n\n\n<p>While the programme is important to South Africa, Tau said it accounts for only 1% of the country&#8217;s total global exports, and a minority of those to the US itself.<\/p>\n\n\n\n<p>The minister issued a response following a notice from the US Trade Office on Monday (2 November) of the Trump administration&#8217;s intention to remove South Africa from the programme as of 1 January 2027.<\/p>\n\n\n\n<p>South Africa had been in the programme since it started in 2000, and has been the biggest beneficiary.<\/p>\n\n\n\n<p>In a letter to Cyril Ramaphosa, US President Donald Trump said that the intention to end South Africa&#8217;s participation was driven by several key factors, including economic and foreign policy considerations.<\/p>\n\n\n\n<p>The reasons for South Africa getting kicked from AGOA, according to Trump, are:<\/p>\n\n\n\n<ul class=\"wp-block-list\">\n<li>South Africa maintains significant tariff and non-tariff barriers that affect United States trade and investment and is not making progress in eliminating them.<\/li>\n\n\n\n<li>South Africa has not established, or is not making continual progress toward establishing, a system to combat corruption and bribery.<\/li>\n\n\n\n<li>Certain actions by the Government of South Africa on matters of international security and its relations and cooperation with governments of concern to the United States risk undermining United States national security and foreign policy.<\/li>\n<\/ul>\n\n\n\n<p>According to Tau, South Africa has 60 days to address the concerns raised by the United States.<\/p>\n\n\n\n<p>&#8220;Government recognises the concern that this decision may create for workers, exporters, businesses and communities linked to AGOA-supported value chains,&#8221; he said.<\/p>\n\n\n\n<p>&#8220;The impact will differ across sectors, and government is working closely with affected industries to assess the implications and will continue to provide appropriate support, on a company-to-company basis.&#8221;<\/p>\n\n\n\n<p>While acknowledging the impact, Tau also moved to downplay the overall effect on South Africa.<\/p>\n\n\n\n<p>He noted that in 2025, approximately 89% of South African exports to the United States entered under ordinary World Trade Organisation most-favoured-nation terms, while approximately<strong> 10% entered under AGOA, down from 28% in 2024. <\/strong><\/p>\n\n\n\n<p>AGOA exports were valued at approximately US$1.7 billion in 2025, down from US$4 billion in 2024, he said, representing only about 1% of South Africa\u2019s total global exports.<\/p>\n\n\n\n<p>He stressed that trade with the United States will continue.<\/p>\n\n\n\n<p>&#8220;Bilateral trade reached US$28.8 billion in 2025, while more than 600 American companies operate in South Africa, supporting approximately 134,600 jobs,&#8221; he said.<\/p>\n\n\n\n<p>These trade relations are complementary and mutually beneficial, he added, noting that South Africa supplies 12 of the 50 minerals the United States considers critical.<\/p>\n\n\n\n<p>However, he flagged that the loss of AGOA will undermine South Africa&#8217;s investments in the United States and negatively affect existing value chains.<\/p>\n\n\n\n<h2 class=\"wp-block-heading\">Plan B in effect<\/h2>\n\n\n\n<figure class=\"wp-block-image size-large\"><a  data-lightbox=\"post-image\" href=\"https:\/\/businesstech.co.za\/news\/wp-content\/uploads\/2026\/03\/Jamison-Greer.jpg\"><img loading=\"lazy\" decoding=\"async\" width=\"1024\" height=\"576\" src=\"https:\/\/businesstech.co.za\/news\/wp-content\/uploads\/2026\/03\/Jamison-Greer-1024x576.jpg\" alt=\"\" class=\"wp-image-853989\" srcset=\"https:\/\/businesstech.co.za\/news\/wp-content\/uploads\/2026\/03\/Jamison-Greer-1024x576.jpg 1024w, https:\/\/businesstech.co.za\/news\/wp-content\/uploads\/2026\/03\/Jamison-Greer-300x169.jpg 300w, https:\/\/businesstech.co.za\/news\/wp-content\/uploads\/2026\/03\/Jamison-Greer-768x432.jpg 768w, https:\/\/businesstech.co.za\/news\/wp-content\/uploads\/2026\/03\/Jamison-Greer.jpg 1200w\" sizes=\"auto, (max-width: 1024px) 100vw, 1024px\" \/><\/a><figcaption class=\"wp-element-caption\">US Trade Representative Jamison Greer<\/figcaption><\/figure>\n\n\n\n<p>Ahead of the AGOA announcement, Tau said the government was making contingency plans regardless of the outcome.<\/p>\n\n\n\n<p>As part of these plans, he said the government will accelerate the diversification of South Africa\u2019s export markets. <\/p>\n\n\n\n<p>This will see South Africa pursuing export opportunities across Africa, Europe, the Middle East and Asia.<\/p>\n\n\n\n<p>&#8220;New market opportunities have also been secured for South African citrus, avocados, grapes and apples,&#8221; he said.<\/p>\n\n\n\n<p>While this has been a plan for South Africa since the United States first imposed punitive tariffs on the country, economists have warned that it is not a simple solution.<\/p>\n\n\n\n<p>The Bureau for Economic Research (BER) noted that diversifying export markets is sensible, &#8220;but it is neither an immediate solution nor a reason to abandon established trading relationships&#8221;.<\/p>\n\n\n\n<p>Notably, South Africa exports very different products to different destinations. Because of this, broader export markets may not help the specific industries hit by the loss of AGOA.<\/p>\n\n\n\n<p>&#8220;Even if increased coal exports to India, for example, more than offset the loss of agricultural exports to the US in value terms, that would offer little immediate relief to a seasonal worker on a citrus farm in the<br>Western Cape,&#8221; the BER said.<\/p>\n\n\n\n<p>&#8220;Aggregate export gains do not necessarily compensate for losses in employment and income in the affected sectors and regions.&#8221;<\/p>\n\n\n\n<p>South Africa also cannot simply open new markets and suddenly create the same demand for its products, the BER said. All of this takes time.<\/p>\n\n\n\n<p>Tau said that the government will support the affected sectors.<\/p>\n\n\n\n<p>It will also &#8220;protect South Africa\u2019s national interests and continue pursuing trade, investment and shared economic opportunities with the United States,&#8221; he said.<\/p>\n\n\n\n<p>However, the country will not back down.<\/p>\n\n\n\n<p>&#8220;As a sovereign constitutional democracy, South Africa will continue to uphold its constitutional responsibilities, transformation objectives and international obligations,&#8221; he said.<\/p>\n","protected":false},"excerpt":{"rendered":"<p>Trade and Industry Minister Parks Tau says losing AGOA does not mean the end of trade with the United States.<\/p>\n","protected":false},"author":10,"featured_media":866776,"comment_status":"open","ping_status":"closed","sticky":true,"template":"","format":"standard","meta":{"_sma_x_autopost_status":"posted","_sma_x_autopost_error":"","_sma_x_post_id":"2117538782509436960","_sma_facebook_post_id":"191437357620492_2259199698233762","_sma_instagram_post_id":"18132856681835349","_sma_x_attempts":1,"footnotes":""},"categories":[1],"tags":[],"class_list":["post-882512","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-trending"],"_links":{"self":[{"href":"https:\/\/businesstech.co.za\/news\/wp-json\/wp\/v2\/posts\/882512","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/businesstech.co.za\/news\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/businesstech.co.za\/news\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/businesstech.co.za\/news\/wp-json\/wp\/v2\/users\/10"}],"replies":[{"embeddable":true,"href":"https:\/\/businesstech.co.za\/news\/wp-json\/wp\/v2\/comments?post=882512"}],"version-history":[{"count":1,"href":"https:\/\/businesstech.co.za\/news\/wp-json\/wp\/v2\/posts\/882512\/revisions"}],"predecessor-version":[{"id":882536,"href":"https:\/\/businesstech.co.za\/news\/wp-json\/wp\/v2\/posts\/882512\/revisions\/882536"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/businesstech.co.za\/news\/wp-json\/wp\/v2\/media\/866776"}],"wp:attachment":[{"href":"https:\/\/businesstech.co.za\/news\/wp-json\/wp\/v2\/media?parent=882512"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/businesstech.co.za\/news\/wp-json\/wp\/v2\/categories?post=882512"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/businesstech.co.za\/news\/wp-json\/wp\/v2\/tags?post=882512"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}