The <a href="https://absafricatv.com/us-to-suspend-south-africa-and-rwanda-from-duty/" title="US to suspend South Africa and Rwanda from duty”>South African government said it will accelerate export-market diversification but will continue seeking trade and investment with the US [Image: @CyrilRamaphosa]
- South Africa plans to expand trade with Africa, India, the EU, and China following the US decision to end AGOA trade benefits by 2027.
- The government will accelerate export-market diversification but will continue seeking trade and investment with the US.
- AGOA exports make up a small portion of overall trade with the US, but the move could significantly impact certain sectors and jobs.
- New export opportunities for citrus, avocados, grapes, and apples have been secured, but job losses in some agricultural sectors are expected.
The South African government says it will accelerate export-market diversification while continuing to pursue trade and investment opportunities with the United States. The US decision is due to take effect on January 1, 2027.
Trade, Industry and Competition Minister Parks Tau said the government recognised the concerns the move could create for workers, exporters and businesses linked to AGOA-supported industries.
He added that new market opportunities had been secured for South African citrus, avocados, grapes and apples, BusinessTech reported on November 3.
The potential impact is significant for some exporters, but AGOA accounts for a relatively small share of South Africa’s overall trade with the US. Tau said about 89% of South African exports to the American market already entered under ordinary World Trade Organization most-favoured-nation terms.
AGOA exports make up a small portion of South Africa’s overall trade with the US, but the move could significantly impact certain sectors and jobs. (Image: Durban Port – Lloyd’s List)Lloyd’s list
AGOA exports were valued at $1.7 billion in 2025, down from $4 billion in 2024. They represented about 10% of South Africa’s exports to the US and roughly 1% of its total global exports. Bilateral trade reached $28.8 billion in 2025, supporting 134,600 jobs across more than 600 American companies operating in South Africa, according to figures cited by Tau.
Writing in November 2, agricultural economist Wandile Sihlobo said losing AGOA benefits would not amount to a trade ban. He estimated that affected products could face an additional most-favoured-nation tariff of about 3.4%, potentially raising tariffs on some goods from 12.5% to 15.9%.
Sihlobo noted that South Africa exported $504 million in agricultural goods to the US in 2025, despite facing temporary tariffs of around 30%. The US accounts for about 4% of the country’s agricultural exports, including citrus, wine, grapes and nuts.
However, the adjustment will not be painless. Reuters reported on November 3 that citrus growers expect some job losses because fruit varieties and orchards developed for the US market cannot easily be redirected elsewhere.
Sihlobo urged South Africa to accelerate diversification towards Asia and the Middle East, while maintaining access to established markets. New destinations, he cautioned, are not an immediate replacement for existing trade relationships.
