Trade, industry & competition minister Parks Tau has welcomed the US Senate’s decision to extend the African Growth and Opportunity Act (Agoa) for a year, but warned that it is only a brief respite.
“We are concerned by the short nature of the extension, and we hope the US will use the opportunity provided by the short extension towards a programme that will provide certainty around investment and purchasing decisions,” Tau said on Tuesday.
The bill will now go to US President Donald Trump for final sign-off.
Tau was optimistic as the extension provides some relief for SA products exported under the scheme amid the recent 30% tariff regime slapped on SA goods entering the US last year.
He said the department is continuing talks with the US government to reduce the 30% tariff.
“We continue to engage constructively with the US administration and believe a healthy trade relationship benefits both our countries,” Tau said.
According to a recent trade, industry & competition department report, SA had global exports of more than R2-trillion in 2024, with Africa, the EU, China, the US and the UK its largest buyers.
South Africa’s global imports were R1.7-trillion, and the EU, China, the Middle East, Africa and the US led on that front.
The Agoa green light comes amid tense SA–US relations under Trump’s administration.
Trump, who skipped Africa’s first G20 summit in Johannesburg, says SA will not be invited to the 2026 gathering, which the US will host.
The US president is sharply critical of SA, spreading false information about a so-called genocide of white people.
The criticism intensified when Ramaphosa in January signed into law the Expropriation Bill, which sets out how organs of state may expropriate land in the public interest for different reasons.
But while Trump’s administration has talked tough on SA, it has exempted the country from harsh decisions.
SA was unaffected by his sweeping visa restrictions on countries in the Southern African Development Community last year. - Business Day
Would you like to comment on this article?
Sign up (it's quick and free) or sign in now.
Please read our Comment Policy before commenting.