US Lawmakers Weigh AGOA Extension as Think Tank Urges Tougher Line on South Africa

The United States (US) Congress has moved closer to renewing the African Growth and Opportunity Act (AGOA), but a US free market think tank argues the programme should be used to hold South Africa accountable for governance failures and foreign policy choices.

The AGOA Extension Act, which would extend the trade preference programme to 31 December 2028, was passed this last week by a congressional committee and will go to a vote in the House of Representatives, where it is likely to pass.

However, the Washington-based Competitive Enterprise Institute (CEI) says, while it welcomes the extension as a win for free trade, it says that renewing South Africa's participation in AGOA without conditions risks rewarding the country's conduct that undermines US interests.

AGOA, enacted in 2000, grants duty-free access to the US market for qualifying African countries. The CEI argues that the programme lowers costs for American consumers while supporting development through a “trade-not-aid” model. However, it stresses that eligibility is explicitly linked to governance standards, human rights, and alignment with US foreign policy.

South Africa is identified as the largest beneficiary of AGOA. In 2024, US imports under the programme totalled $8.0 billion, with $3.76 billion, or 47%, coming from South Africa. According to the CEI, Pretoria’s economic gains have coincided with worsening corruption and decisions around foreign policy that place it at odds with Washington.

The think tank points to South Africa’s closer ties with Russia and China, joint military exercises, and engagement with actors hostile to the US and its allies as evidence that the current relationship is unsustainable without reform.

The CEI highlights proposed legislation from Senator John Kennedy that would mandate a comprehensive review of US-South Africa relations, allow for South Africa’s removal from AGOA, and enable sanctions against senior South African officials. US Trade Representative Jamieson Greer has indicated support for extending AGOA and said he is open to considering South Africa’s exclusion, setting the stage for a more conditional renewal of AGOA.