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South Africa\u2019s 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.<\/p>\n
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\u2019s handed to President Donald Trump for his signature.<\/p>\n
\u201cThe current renewal, while short, provides the necessary relief to companies in the context of the tariffs implemented by the US,\u201d 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.<\/p>\n
Read: Could South Africa be excluded from a potential Agoa extension?<\/p>\n
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.<\/p>\n
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The legislation\u2019s 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offensive, slapping new tariffs on US trading partners in August, including a 30% levy on South African exports that superseded the duty-free pact.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\u2019s trade policy later on Wednesday.<\/p>\n
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\u2019s \u201chappy to consider\u201d removing South Africa from the pact, while Kennedy has described Pretoria as an \u201cenemy\u201d of the US.<\/p>\n
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.<\/p>\n
The vote in the House of Representatives this week coincided with naval exercises being conducted off South Africa\u2019s coast with China, Russia and Iran.<\/p>\n
Read: SA\u2019s Agoa inclusion questioned, tech jobs on the rise, and Mr Price acquires European retailer<\/p>\n
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\u2019s Facebook page show captains of participating naval vessels docked in Simon\u2019s Town, with Iranian officials present.<\/p>\n
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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\u2019s second-biggest trade partner in 2024, with trade totaling $21.6 billion, according to data compiled by Bloomberg.<\/p>\n
\u201cSouth 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,\u201d Tau said. \u201cAGOA 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.\u201d<\/p>\n
Read: How Trump\u2019s tariffs are rattling through the SA economy<\/p>\n
Kenyan President William Ruto also welcomed the extension of AGOA, saying it would lead to \u201crenewed confidence and expansion\u201d in the East African nation\u2019s economy.<\/p>\n
\u00a9 2026 Bloomberg<\/p>\n
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