South Africa's Department of Trade, Industry and Competition said it has taken note of the approval of the African Growth and Opportunity Act Extension Bill by the U.S. House of Representatives. The bill extends the framework that allows eligible sub-Saharan African countries to access the U.S. market on a duty-free basis.
According to the department, the continuation of the programme is relevant for trade planning and supply chain continuity. "The renewal of AGOA will complement and support the implementation of the Africa Continental Free Trade Area and creation of regional value chains, as well as support American businesses that depend on inputs and products imported into the U.S. market under AGOA. This will provide certainty and predictability for African and American businesses that rely on the program," the department said.
The United States remains South Africa's third-largest export destination and one of its main trading partners. In 2024, total bilateral trade between South Africa and the U.S. amounted to about US$15 billion. South Africa's exports to the U.S. were valued at US$8 billion, while imports from the U.S. stood at US$7 billion, resulting in a trade surplus of US$1 billion.
Minister Parks Tau noted the ongoing trade and investment relationship between the two countries. "Minister Tau emphasised that South Africa values its longstanding trade and investment relationship with the U.S. [which is] a critical partner in driving mutually beneficial economic growth, industrialisation, and job creation," the department stated. It added that "AGOA has been important in this partnership for over two decades, supporting thousands of jobs in both countries and contributing to stable supply chains across key sectors, notably in agriculture.
The department acknowledged that bilateral relations have faced pressure over the past year but reiterated South Africa's position on continued engagement. It stated that South Africa remains committed to "mature engagement regarding matters of mutual concern, ensuring that we are able to reach our shared economic goals".
According to the department, South Africa is currently the largest sub-Saharan African importer of U.S. goods and the largest African source of foreign direct investment into the U.S. The country is also described as a supplier of raw materials to several U.S. supply chains. "South Africa and the United States continue to engage with each other in the negotiation of an Agreement on Reciprocal Tariffs aimed at promoting mutually beneficial trade and investment relations and addressing trade barriers that affect bilateral trade," the department said.
Source: SA News
