The AGOA trade agreement remains in effect for one year and South Africa continues to participate, although it does little to address the 30% tariffs on many South African exports to the US.
By Francois Williams, senior journalist at African Farming and Landbouweekblad
President Donald Trump has approved the extension of the AGOA trade agreement by just one year, but South Africa will still have to negotiate hard to secure better tariffs with the US.
South Africa will remain part of the African Growth and Opportunity Act (AGOA) for at least another year. Although the extension is seen as a small and temporary victory, agricultural organisations and industry bodies widely welcomed the news earlier this month.
America still represented 3%-6% of South Africa’s total agricultural exports in the third quarter of 2025, even though exports to the US decreased by 11% to $144 million during this period, said Johann Kotzé, CEO of AgriSA. For agricultural sectors such as citrus, ostrich, grapes, wine, fruit juices and nuts, access to the US market remains very important, AgriSA said.
AGOA offers tariff-free access to the US market for more than 1 800 products from about 44 African countries.
Also read: AGOA extension offers little relief for SA’s citrus exports
Little Room For Further Negotiation
However, observers regard the year-long extension of AGOA as only a small victory, offering little room for further negotiation, as the 30% tariffs previously imposed by President Trump on South African products still apply.
Trump signed legislation extending the AGOA trade preference programme until the end of December this year, the US Trade Representative confirmed in a statement. Jamieson Greer, US Trade Representative, said the programme must be modernised in the coming year to align with Trump’s “America First” trade policy.
Wandile Sihlobo, chief economist at the agricultural business organisation Agbiz, said the extension was welcomed. He also referred to the 11% decline in agricultural exports to the US in the third quarter of 2025 and noted that fourth-quarter figures would be awaited to obtain the full picture.
He cited certain food products that the US had exempted from its reciprocal tariffs, including coffee, tea, fruit juices, cocoa, spices, avocados, bananas, coconuts, guavas, limes, oranges, mangoes, pineapples, various peppers, tomatoes and beef. From a South African perspective, the exemption of oranges, macadamia nuts and fruit juices represents a significant benefit.
With relations between the US and South Africa having soured over the past year, there is growing concern that South Africa could lose its participation in the programme. Parks Tau, Minister of Trade, Industry and Competition, said the extension does provide some relief for South African products exported under the programme.
“But we are concerned about the short extension and we hope America will use the opportunity to provide more certainty on investments and purchasing decisions.”
According to Tau, South Africa is still “constructively” negotiating with America on an agreement on reciprocal tariffs to reduce the 30% tariff on South African products.
Also read: South Africa’s AGOA future increasingly uncertain
Only A Small Benefit
Christo Conradie, South African Wine’s manager of stakeholder engagement and market access, said the extension really only means that South African wine exports will pay the additional tariffs of roughly 2%-4%, under the World Trade Organization’s system for most-favoured nations, except if South Africa was not part of AGOA. The 30% still applies, making exporting to America extremely difficult.
Local exporters are exploring how they can absorb the 30% while negotiating with American importers on how the impact can be spread and mitigated. According to Conradie, the matter is now in the hands of three government departments – international relations and cooperation; trade, industry and competition; and agriculture – to negotiate further with America.
Also read: Last of AGOA benefits soon to be gone
Can’t Sit Still Now
Conradie added that South Africa cannot stand idle while competitors negotiate better trading positions for themselves. The rest of the world is actively concluding new and alternative trade agreements, such as the European Union agreements with India and the Mercosur trade bloc of South America.
Kotzé said AgriSA reiterates its call for a long-term renewal of AGOA, as greater predictability will strengthen trust and deepen bilateral cooperation. AgriSA regards AGOA as a shared economic and development tool that should not be used for political gain.
According to Sihlobo, the primary focus now should be on South Africa concluding a trade agreement with America, as the current higher tariffs disadvantage the country on the US market compared to its competitors.
Also read: Vision 260 Strategy: Citrus exports deliver on growth promise
