The United States is expected to announce on Monday 2 November whether South Africa keeps its African Growth and Opportunity Act (AGOA) benefits for 2027, a decision that will shape trade talks with South Africa's second-largest export market.

Trade, Industry and Competition Minister Parks Tau has said government is prepared for either outcome.

What Tau says

"We are ready, whatever the decision," Tau said, according to a government statement. He added: "We remain committed to engagement and our doors remain open for dialogue."

Tau told a recent NEDLAC address that "whatever the outcome, our economy will remain stable, our exporters will keep trading", and government says it is confident the US will respond favourably to South Africa's offers.

What is at stake

  • Bilateral trade reached $28.8 billion (about R478.7 billion) in 2025, according to government figures.
  • About 89% of South Africa's 2025 exports to the US entered on ordinary most-favoured-nation terms and about 10% under AGOA. AGOA exports were $1.7 billion (about R28.3 billion), roughly 1% of South Africa's total exports, according to Tau's briefing.
  • More than 600 American companies operate in South Africa, supporting about 134,600 jobs, and US firms committed more than $5 billion in new investment in the past year, government says.
  • AGOA gives duty-free access to more than 1,800 products. Separately, Tau said US Section 232 tariffs of 25% apply to covered automotive exports and 50% to specified steel and aluminium products.

Solidarity's Jaco Kleynhans said South Africa's exports to the US support more than half a million local jobs, about half of them in sectors that benefit from AGOA. "We cannot guarantee a favourable outcome," he said.

The 60-day rule

If the US concerns remain, South Africa will have 60 days to address them before any suspension, full or partial, could take effect, according to government. US law requires at least 60 days' notice to Congress and the affected country before AGOA benefits are withdrawn or suspended.

What we do not yet know

  • Whether the US has announced its decision, and what it says.
  • Which specific US concerns, if any, remain outstanding.
  • How any decision would affect the sectors that rely most on AGOA.