SA welcomes AGOA extension amid rising scrutiny from Washington
South Africa has welcomed the US House of Representatives’ approval of a three-year extension of the African Growth and Opportunity Act (AGOA).
Image: Independent Media Archives
South Africa has welcomed the US House of Representatives’ approval of a three-year extension of the African Growth and Opportunity Act (AGOA).
IOL previously reported that the US House of Representatives has approved a three-year extension of the African Growth and Opportunity Act (AGOA), the trade programme that allows many sub-Saharan African countries duty-free access to American markets.
The US House of Representatives voted overwhelmingly in favour of the extension, with 340 lawmakers supporting the bill and 54 opposing. The legislation now moves to the Senate for further consideration, where the fate of South Africa’s participation remains uncertain amid ongoing trade and diplomatic tensions with Washington.
Minister of Trade, Industry and Competition Park Tau said the renewal “provides the necessary relief to companies in the context of the tariffs implemented by the United States” and ensures “certainty and predictability for African and American businesses that rely on the programme”.
Tau added that "the renewal of AGOA will complement and support the implementation of the Africa Continental Free Trade Area and creation of regional value chains, as well as support American businesses that depend on inputs and products imported into the US market under AGOA".
However, while Tau has welcomed the extension, there’s still uncertainty around South Africa’s participation in the programme, because the bill now goes to the US Senate for approval, and some lawmakers have raised concerns about the country's foreign policy and diplomatic relationship with Washington.
South Africa’s engagement in military exercises with China, Russia and Iran, and broader trade and diplomatic disagreements with the US, have also fuelled scrutiny in Washington over the country’s eligibility under AGOA.
According to the South African Revenue Service, total bilateral trade between South Africa and the United States was about $15 billion in 2024, with South Africa’s exports at $8 billion and imports at $7 billion, resulting in a trade surplus of roughly $1 billion.
"SA in turn is the largest sub-Saharan African importer of goods from the US; and the biggest source of foreign direct investment to the US from the African continent and a crucial supplier of raw materials to many US supply chains," Tau said.
"South Africa and the United States continue to engage with each other in the negotiation of an Agreement on Reciprocal Tariffs aimed at promoting mutually beneficial trade and address trade barriers that affect bilateral trade."
mthobisi.nozulela@iol.co.za
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