South Africa downplays AGOA blow

South Africa has sought to minimize concerns over major economic damage following the US decision to exclude it from a trade program called AGOA. Washington announced plans to remove South Africa, alongside Rwanda, from AGOA next year. The fruit and nut exports from South Africa had benefited from the 26-year-old program, which allows thousands of products from eligible African countries to enter the US market duty-free.

However, the US cited concerns ranging from barriers to American trade and investment, through corruption, to foreign policy when explaining its move. South African farmers and exporters warned that the wine and citrus sectors could face job losses. The decision further deepens the rift between Pretoria and Washington, entangling a trade dispute with broader political differences.

South African officials say much of its biggest trade with the US is already outside AGOA protection. President Cyril Ramaphosa's agriculture envoy, Wandile Sihlobo, stated that losing the program was not a "train smash." The economist Eckart Naumann called South Africa's removal from AGOA regrettable, but not a "doom." South Africa exported roughly $1.7 billion of goods to the US under AGOA in 2025, representing around 10% of the country's sales to the country and around 1% of its global exports.

However, some of South Africa's largest exports, such as platinum group metals, already enter duty-free because they are deemed important to the economy. The loss of AGOA may push South Africa further into China's orbit.