South Africa Faces Possible Exclusion From AGOA

Senior United States (US) trade officials and lawmakers have signalled that South Africa’s political alignment is increasingly at odds with the purpose of the African Growth and Opportunity Act (AGOA), the flagship programme governing US–Africa trade.

AGOA, enacted in 2000, allows eligible African countries to export selected goods to the US duty free. South Africa has been one of its largest beneficiaries, exporting more than $3 billion in goods annually under the scheme. The programme expired in September and now awaits congressional renewal.

South Africa’s status under scrutiny

South Africa’s status as an AGOA beneficiary came under direct scrutiny during a congressional hearing last week. Senator John Kennedy questioned Jamieson Greer, the United States Trade Representative (USTR), on the administration’s position on AGOA. As USTR, Greer is the Trump administration’s chief trade negotiator and the official responsible for executing its trade policy.

Greer said the administration is open to a one-year AGOA extension, during which time it will reassess and improve the program. Greer explained that AGOA has delivered little strategic return for the US, particularly as China’s trade footprint in Africa continues to far exceed America’s. “We should explore enhanced bilateral trade [and] more export access,” he said.

During the hearing, Kennedy singled out South Africa as a particular concern: “They are aligned with our adversaries and have been very critical of us… Don’t you think we ought to separate South Africa from AGOA?”

The criticism reflects growing frustration in Washington over South Africa’s foreign policy choices. Officials point to Pretoria’s deepening ties with Iran, its pro-Russia and pro-China posture, and its decision to pursue a genocide case against Israel at the International Court of Justice. Relations deteriorated further after President Trump declined to attend the G20 summit hosted by South Africa in Johannesburg.

Greer responded that the administration would consider removing South Africa from AGOA. "If you believe South Africa should receive different treatment, I am open to that," he said, describing the country as "a unique problem."

He pointed to South Africa’s political alignment as a factor behind its existing 30% tariff rate, compared with 10% for most sub-Saharan African countries.

Greer also argued that South Africa's industrialised economy has outgrown the preference-based trade framework designed for less developed markets. The administration now expects a more reciprocal trade agreement.

"On trade they have many barriers, not just tariffs but significant non-tariff barriers," Greer said. "We have made clear that if they want better tariff treatment, they need to address those barriers."

Competing paths to AGOA renewal

Two competing bills to renew AGOA are currently moving through the House of Representatives and the Senate. The House bill proposes a straightforward three-year extension, while the Senate version, introduced by Kennedy, calls for a two-year extension, a full review of US–South Africa relations, and potential sanctions on government officials. Both aim to keep AGOA alive.

The House version passed out of committee with bipartisan support last week and is expected to face a full House vote. The Senate version has not yet been scheduled for a vote.

Any final legislation would need to reconcile the two approaches. However, lawmakers are also considering an alternative path forward. According to the Africa Report, they may attach an AGOA extension to a Continuing Resolution, a temporary spending bill needed to keep the US government funded beyond January 30. This would allow AGOA to continue without requiring its own standalone legislative process.

South Africa’s status is up to the President

AGOA legislation gives the President, acting through the USTR, the authority to determine each country’s eligibility. At least seven countries have been removed from the programme since 2000 due to reasons including human rights abuses, coups, and actions that undermine democratic governance.

The Competitive Enterprise Institute, a Washington-based think tank, captured the moment plainly. “With the Trump administration signalling support,” it said, “there should be nothing that stands in the way of Congress from renewing AGOA in the near future and taking the steps necessary to hold Pretoria’s feet to the fire.”