South Africa lauds US trade-pact benefits as senate vote looms

South Africa’s government welcomed the approval of a US preferential-trade deal before a key vote in the Senate, where Pretoria has faced opposition to its continued inclusion in the pact.

The House of Representatives approved the three-year extension of the African Growth and Opportunity Act, which expired in September, by 340 votes to 54 on January 12. The legislation, which grants tariff-free access to more than 1 800 products from 32 countries, is expected to go before the Senate early this year before it’s handed to President Donald Trump for his signature.

“The current renewal, while short, provides the necessary relief to companies in the context of the tariffs implemented by the US,” South African Trade, Industry and Competition Minister Parks Tau said in a statement late Tuesday. Pretoria and other AGOA-eligible countries have advocated for a long-term renewal of the pact with all countries in the program.

Read: Could South Africa be excluded from a potential Agoa extension?

AGOA has been key to boosting trade relations between sub-Saharan Africa and the US since its inception in 2000. Two-way trade between the US and countries that qualify for market access under the pact exceeded $47 billion in 2023, with US exports at $18.2 billion lagging imports of $29.3 billion.

The legislation’s lapse came as Trump escalated his global trade offensive, slapping new tariffs on US trading partners in August, including a 30% levy on South African exports that superseded the duty-free pact. The US Supreme Court is expected to rule on the legality of Trump’s trade policy later on Wednesday.

While South Africa has sought its continued inclusion in AGOA, the country has faced opposition from US officials including US Trade Representative Jamieson Greer and Republican Senator John Kennedy. Greer said in December that he’s “happy to consider” removing South Africa from the pact, while Kennedy has described Pretoria as an “enemy” of the US.

That criticism follows a deterioration in relations between Pretoria and Washington since Trump came to power in January 2025. The US leader has accused South Africa of unfair trade, expelled its ambassador, and slammed its international court case against Israel. Members of his administration have called out its relations with countries including Iran and Russia.

The vote in the House of Representatives this week coincided with naval exercises being conducted off South Africa’s coast with China, Russia and Iran.

Read: SA’s Agoa inclusion questioned, tech jobs on the rise, and Mr Price acquires European retailer

News24, a Cape Town-based news agency, reported on Jan. 12 that the authorities in Pretoria had persuaded Iran to withdraw from the war games. However, pictures on the South African National Defence Force’s Facebook page show captains of participating naval vessels docked in Simon’s Town, with Iranian officials present.

South Africa places high importance on its economic ties to the US, with talks at persuading Washington to reduce its tariffs continuing, Tau said. The US was South Africa’s second-biggest trade partner in 2024, with trade totaling $21.6 billion, according to data compiled by Bloomberg.

“South Africa values its longstanding trade and investment relationship with the US, our third-largest export destination in the world, and a critical partner in driving mutually beneficial economic growth, industrialization, and job creation,” Tau said. “AGOA has been important in this partnership for over two decades, supporting thousands of jobs in both countries and contributing to stable supply chains across key sectors.”

Read: How Trump’s tariffs are rattling through the SA economy

Kenyan President William Ruto also welcomed the extension of AGOA, saying it would lead to “renewed confidence and expansion” in the East African nation’s economy.

© 2026 Bloomberg

Follow Moneyweb’s in-depth finance and business news on WhatsApp here.