The Trump administration’s recent move to remove South Africa from the African Growth and Opportunity Act (AGOA) is raising alarm over potential job losses in the nation’s agricultural and manufacturing sectors. The decision is set to come into effect on January 1, 2027, effectively ending South Africa’s preferential access to the U.S. market under the trade program.
On November 2, U.S. Trade Representative Jamieson Greer announced that President Donald Trump had informed Congress and the governments of South Africa and Rwanda about the planned termination of their AGOA eligibility. Washington cited concerns over trade and investment barriers, corruption, and policies perceived as contrary to U.S. national security and foreign policy interests as the reasons for this move. Rwanda is also facing removal from the program.
In response, South Africa’s Trade, Industry and Competition Minister Parks Tau emphasized the government’s commitment to diversifying export markets to mitigate the impact of the AGOA withdrawal. Tau indicated that efforts would be accelerated to strengthen trade relations with other regions, including Africa, India, China, and the European Union. He also noted that while AGOA remains an important trade arrangement, it is not the entirety of South Africa’s economic relationship with the United States, with 89% of exports entering the U.S. under standard World Trade Organization terms in 2025.
The proposed withdrawal has sparked concerns about significant job losses, particularly in the sectors of agriculture and manufacturing. COSATU, a major labor federation in South Africa, warned that losing preferential trade access could jeopardize thousands of livelihoods. The citrus industry, a major beneficiary of AGOA, has also expressed worry about the potential negative consequences for exporters, agricultural producers, and workers, especially in regions like the Western Cape and Northern Cape.
AGOA, established in 2000, grants eligible African countries duty-free access to the U.S. market for a wide range of products. South Africa has been one of the key beneficiaries of this program. Although the planned decision will not halt all trade between the two countries, South African exporters might face additional tariffs once their preferential access expires at the end of December 2026.