US to vote on Agoa renewal this week

Senate approval and Trump’s signature are required as South Africa’s eligibility remains in question

Jana Marx

Jana Marx

Economics Correspondent

The US House of Representatives is expected to vote this week on a bill to renew the African Growth and Opportunity Act. Picture: File photo (123RF/Raisin7036)

The US House of Representatives is expected to vote this week on a bill to renew the African Growth and Opportunity Act (Agoa), a key trade deal that offers duty-free access to the American market for eligible African countries, but South Africa’s future in the programme remains unresolved.

The draft legislation, which would extend Agoa until December 2028, passed through the influential House ways and means committee in December by a decisive 37–3 vote, with support from Republican and Democratic lawmakers. However, the bill notably contains no language regarding South Africa, despite the country being one of the largest beneficiaries of the almost 26-year-old trade arrangement.

The agreement officially expired at the end of September 2025.

Even with strong bipartisan backing for Agoa’s extension, the final version of the bill must still clear the US Senate and be signed into law by US President Donald Trump. That process leaves room for amendments, including possible conditions on South Africa’s continued eligibility.

South Africa’s exclusion from the draft has raised red flags within government and industry circles, particularly as the US has increasingly criticised what it views as “tariff and non-tariff barriers” affecting market access for American goods.

US trade representative Jamieson Greer recently told a Senate subcommittee South Africa was a “unique problem” for US trade officials. Responding to Republican senator John Kennedy, Greer said South Africa had failed to respond adequately to many US proposals and continued to maintain restrictive trade practices.

“If they ever want to have a better tariff situation with us, they need to take care of the tariffs and non-tariff barriers,” Greer said. He added he was “happy to consider” removing the country from Agoa altogether.

In August, the US imposed 30% “reciprocal” tariffs on key South African exports, including citrus, steel and wine. The tariffs followed many unacknowledged trade proposals sent by South African officials to their US counterparts.

The fraught mood between the two countries followed Washington’s high‑profile boycott of the G20 leaders’ summit in Johannesburg last month. Trump said no US government officials would attend the summit, repeating claims about the treatment of white South African farmers, which he called “human rights abuses”, assertions South African officials have strongly denied and that lack credible evidence.

According to the American Chamber of Commerce in South Africa, Agoa has supported 1.3-million African jobs, facilitated more than half a trillion dollars in duty-free exports to the US, and sustains nearly 500,000 American jobs.

The committee behind the bill warned a prolonged lapse in Agoa would “create a void that malign actors such as China and Russia will seek to fill”. Africa holds about 30% of the world’s critical mineral reserves, and the US is increasingly concerned about China’s growing investments in the region — estimated at between $8bn (R131.2bn) and $10bn (R164bn) in recent years — aimed at securing supply chains.

While South Africa exports less than 8% of its total goods to the US, and products covered under Agoa account for less than 4%, the stakes are far higher for certain industries.

The automotive sector, especially in the Eastern Cape, has long relied on duty-free access to the US market under Agoa, forming the backbone of regional manufacturing and employment. A disruption to the access could lead to job losses and weakened investor confidence in a strained economy.

Additional reporting by Reuters

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