The United States has renewed the African Growth and Opportunity Act (AGOA), but the extension only applies until the end of 2026.
Originally founded in 2000, the AGOA programme gives select African countries duty-free access to the US market for certain goods, including vehicles, clothing and agricultural produce.
The programme had expired on September 30, 2025. It will now be retroactively applied to that date, US Trade Representative Jamieson Greer confirmed after President Donald Trump signed the extension into law on February 3.
However, South Africa’s future participation in AGOA remains uncertain, given Pretoria’s significantly strained diplomatic relations with the US. Yet South Africa’s membership appears to be intact for the time being, at least.
In a statement issued on Tuesday evening, South Africa’s Minister of Trade, Industry and Competition, Parks Tau, welcomed the extension of AGOA but expressed concern about its short duration.
“This extension will provide some relief to South African products exported under the scheme. We are, however, concerned by the short nature of the extension, and we hope the United States will use this opportunity provided by the short extension towards a programme that will provide certainty around investment and purchasing decisions,” Tau said.
He said South Africa continues to engage “constructively” with the US, with the hope of reducing the 30% tariff imposed by the US on South African goods in 2025.
“We continue to engage constructively with the US administration and believe that a healthy trade relationship benefits both our countries,” Tau added.
The current 30% tariff overrides most of AGOA’s benefits to South Africa.
US Representative Greer hinted at potential changes to the AGOA benefits for all participants.
“AGOA for the 21st century must demand more from our trading partners and yield more market access for US businesses, farmers, and ranchers to build upon the benefits it has historically provided to Africa and the United States,” Greer said.
“We must also make sure that the program enhances US-Africa trade and will work with Congress over the next year to modernise the program to align with President Trump’s America First Trade Policy.”
The office of the US Trade Representative (USTR) said it would work with relevant agencies in the coming days to update the Harmonised Tariff Schedule so that the new AGOA tariff rates are applied to US imports.
The USTR said that in order to meet AGOA’s “rigorous” eligibility requirements, countries must establish or make continual progress toward establishing a market-based economy, the rule of law, political pluralism, and the right to due process.
“Additionally, countries must eliminate barriers to US trade and investment, enact policies to reduce poverty, combat corruption, and protect human rights,” the USTR said.
Source: iol.co.za
