NATIONAL NEWS - The United States intends to remove South Africa from its African Growth and Opportunity Act (AGOA) trade preference programme from 1 January 2027, potentially affecting the country’s access to preferential trade terms in the American market.
US President Donald Trump has notified Congress and the governments of South Africa and Rwanda of his intention to terminate their participation in the programme, according to a statement issued by US Trade Representative Ambassador Jamieson Greer on 2 November.
The announcement follows an annual review of sub-Saharan African countries' eligibility for AGOA, led by the Office of the United States Trade Representative.
Greer said the US administration had concluded that both countries were engaging in practices inconsistent with the programme's eligibility requirements.
In South Africa's case, the US cited what it described as barriers to American trade and investment, corruption, and concerns relating to US national security and foreign policy interests.
The administration said it wanted its African trading partners to take the necessary steps to meet AGOA's eligibility criteria.
AGOA provides eligible sub-Saharan African countries with preferential, duty-free access to the US market for thousands of products. Losing this status could affect South African exporters who rely on the trade benefits to remain competitive in the American market.
The proposed termination is set to take effect on 1 January 2027.
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