22 May 2026 – The United States’ decision to extend the African Growth and Opportunity Act (Agoa) trade programme through to the end of 2026 has brought relief to South African exporters and businesses after months of uncertainty over the future of the preferential trade arrangement.
In a proclamation issued by US President Donald Trump, the White House confirmed that duty-free treatment under Agoa for beneficiary sub-Saharan African countries would remain in effect until 31 December 2026.
The extension from the end of September 2026 to end December also includes the continuation of the regional apparel and third-country fabric programmes that are critical to Africa’s textile and clothing industries.
The move comes despite earlier concerns that South Africa’s Agoa eligibility could come under pressure amid Washington’s increasingly protectionist “America First” trade posture and diplomatic tensions over Pretoria’s foreign policy stance.
The Trump administration has also excluded South Africa from attending the G20 meetings, and the G20 Leaders Summit, during the current US presidency cycle due to diplomatic rifts.
Agoa allows qualifying African countries to export thousands of products into the US market duty-free, supporting industries such as automotive manufacturing, agriculture, textiles, mining and processed goods. South Africa is among the largest beneficiaries of the programme.
Amid ongoing discussions about the future of the programme, the Department of Trade, Industry and Competition (the dtic) recently submitted a 12-page response to the Office of the United States Trade Representative (USTR) following calls for proposals on Agoa’s reform and modernisation.
The submission addressed several issues raised by the USTR, including non-tariff barriers, increasing US exports and jobs, reciprocal trade, revised eligibility criteria, critical minerals and the future structure of Agoa.
On reciprocal trade concerns, the dtic acknowledged US criticism over tariff differences between South Africa and the European Union (EU) due to the Economic Partnership Agreement (EPA) between African countries and the EU. Source: Business Report (IoL)
