South Africa Welcomes U.S. Extension of Key Trade Program
The African Growth and Opportunity Act (AGOA), established in 2000, provides tariff-free entry to American markets for eligible sub-Saharan African states. South Africa has emerged as the program's largest beneficiary, particularly through automotive and agricultural commerce with Washington. The arrangement lapsed in September, prompting multiple African governments—including Pretoria—to advocate for its continuation despite the Trump administration's wariness toward multilateral trade frameworks.
The House greenlit a three-year extension Monday through a 340–54 vote. The measure now advances to the Senate for consideration before reaching President Donald Trump for final authorization.
South African Trade and Industry Minister Parks Tau declared Tuesday that the limited extension would deliver "necessary relief" to businesses grappling with elevated expenses following Washington's implementation of fresh tariffs.
Tau emphasized that Pretoria maintains dedication to "mature engagement" with Washington on commerce and investment matters. He revealed both governments are working toward an accord on reciprocal duties intended to minimize obstacles and strengthen bilateral trade stability.
Since 2023, U.S. legislators have advocated stripping Pretoria of AGOA privileges, pointing to South Africa's unwillingness to support Washington on significant foreign policy positions. Diplomatic friction between Pretoria and Washington has intensified since Trump resumed the presidency last year, with the commander-in-chief repeatedly claiming the South African government permits genocide against its white population—charges Pretoria has rejected as misinformation.
In January 2024, the Biden administration expelled the Central African Republic, Gabon, Niger, and Uganda from AGOA for purported violations of participation standards.
Commercial exchange between the nations totaled $15 billion in 2024, with South Africa achieving a $1 billion trade advantage, the trade ministry stated, referencing figures from the South African Revenue Service. Exports to the U.S. reached $8 billion, predominantly fueled by commodities including platinum, precious metals, motor vehicles, diamonds, and gold, with deliveries during the initial nine months of 2025 reaching $5.9 billion, ministry data showed.
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