South Africa remains confident of a favourable outcome ahead of the US announcement, expected on Monday, November 2, of its annual review of the country’s eligibility for African Growth and Opportunity Act (AGOA) benefits in 2027.
Minister of Trade, Industry and Competition Parks Tau addressed the National Economic Development and Labour Council on Thursday regarding the upcoming review. He said the government, social partners, the global investor community and regional partners were confident the US government would acknowledge and respond favourably to South Africa’s offers during ongoing negotiations.
“Whatever the outcome, our economy will remain stable, our exporters will keep trading, and government stands ready to support our economy, particularly the hard-working SA business community and their employees who are the backbone of our society and communities from which we all come,” Tau said.
Bilateral trade between South Africa and the US reached $28.8 billion (approximately R478.7bn) in 2025. More than 600 American companies operate in South Africa, supporting around 134 600 jobs. US companies committed more than $5bn (approximately R83.1bn) in investment in the past year alone. South Africa also supplies 12 of the 50 minerals the US considers critical.
Tau met with United States Trade Representative Ambassador Greer in Washington DC last month following two rounds of discussions between senior officials. While practical proposals had been tabled, certain principles remained non-negotiable, he said.
“Transformation is a constitutional and developmental imperative. Land reform operates within our Constitution and under the authority of our courts,” Tau said.
In 2025, approximately 89% of South Africa’s exports to the US entered under ordinary World Trade Organization most-favoured-nation terms, while about 10% entered under AGOA. AGOA exports were valued at $1.7bn (approximately R28.3bn), accounting for about 1% of South Africa’s total global exports.
Greater pressure on exporters stemmed from US Section 232 tariffs, including duties of 25% on covered automotive exports and 50% on specified steel and aluminium products, Tau said.
Meanwhile, trade union Solidarity held urgent discussions with senior officials at the White House and the US Department of State on Thursday.
“We are going to the White House with a clear message: South African businesses, entrepreneurs and workers must not become the victims of this diplomatic crisis. We want to retain AGOA, protect jobs and help find a way out of this diplomatic impasse,” said Jaco Kleynhans, Solidarity’s head of public liaison.
South Africa’s exports to the US supported more than half a million local jobs, with approximately half in sectors benefiting from AGOA trade terms, Solidarity said.
Exclusion would threaten business competitiveness and local livelihoods, the organisation warned. Early-season table grapes, for example, would face higher import tariffs and potential replacement by South American products.
Solidarity had acted out of patriotism to safeguard its members and trade, but governmental disputes had exacerbated the crisis, Kleynhans said.
“We cannot guarantee a favourable outcome, but we can do everything in our power to fight for one. That is exactly what we will be doing again in Washington this week,” he said.
US law requires Congress and the affected country to receive at least 60 days’ notice before AGOA benefits can be withdrawn or suspended.
Meanwhile, the government was implementing its Industrial Development Strategy and pursuing market diversification through its Butterfly Strategy, Tau said. Target markets included the African Continental Free Trade Area, India, SADC, the European Union, the United Kingdom, ASEAN, MERCOSUR and China.
