South Africa Retains US AGOA Trade Privileges for 2025

AFRICAN BUSINESS AND ECONOMYDecember 24, 2024 at 11:18 AM UTC

TLDR

South Africa will maintain duty-free access to US markets in 2025 under the African Growth and Opportunity Act (AGOA)
This is despite strained relations over its ties with China, refusal to condemn Russia’s actions in Ukraine, and stance on Israel
The development ensures South African goods continue to benefit from preferential access to the world’s largest economy

South Africa will maintain duty-free access to US markets in 2025 under the African Growth and Opportunity Act (AGOA) despite strained relations over its ties with China, refusal to condemn Russia’s actions in Ukraine, and stance on Israel.

The US Trade Representative’s annual review left the list of eligible nations unchanged, ensuring South African goods continue to benefit from preferential access to the world’s largest economy. The US is South Africa’s second-largest trading partner after China, making AGOA critical to South Africa’s economic growth efforts.

While AGOA’s extension beyond its 2025 expiration remains uncertain, US lawmakers are divided over South Africa’s eligibility. Proposals to extend the trade program until 2041 underscore its importance to sub-Saharan economies.

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Key Takeaways

South Africa’s inclusion reflects pragmatic economic considerations despite geopolitical tensions. However, pending US legislation to assess South Africa’s national-security risks could jeopardize the duty-free status of thousands of its products. The decision highlights the delicate balance between economic collaboration and political disagreements, with AGOA playing a pivotal role in bolstering trade ties amid a sluggish South African economy.

South Africa

Economy

United States

Trade

AGOA

Exports