The Democratic Alliance (DA) has welcomed what it calls encouraging signs of progress towards a comprehensive trade deal between South Africa and the United States (US), alongside reports that Washington may grant a one-year extension to the African Growth and Opportunity Act (AGOA).

The party noted that tariffs of up to 30% were imposed on South African exports from 1 August, but said current discussions point to opportunities beyond simple tariff relief. “South Africa should not only focus on removing the new duties but use this moment to build a modern trade framework anchored in shared economic and security priorities,” the DA said in a statement.

Reports from Washington suggest the White House is considering a retroactive one-year extension of AGOA to give negotiators more time to shape a longer-term renewal. The DA argued that this window should be used to align policy and investment with sectors of strategic importance, such as critical minerals, infrastructure, and advanced manufacturing, which analysts estimate could unlock up to $125 billion in trade and investment.