By: ThinkBusiness Africa
The South African government has officially welcomed a decisive vote by the U.S. House of Representatives to renew the African Growth and Opportunity Act (AGOA), a move that provides a temporary lifeline to thousands of local businesses following months of trade uncertainty.
On Tuesday, the House passed the AGOA Extension Act with a significant bipartisan majority of 340 to 54. The bill proposes extending the duty-free trade program—which expired in September 2025—for an additional three years, through December 31, 2028.
South African Minister of Trade, Industry, and Competition, Parks Tau, expressed relief at the news, noting that the renewal would restore “certainty and predictability” for exporters who have been operating in a vacuum since the program lapsed.
“While we have consistently advocated for a long-term, 10-year renewal to encourage capital investment, this three-year ‘bridge’ provides the necessary immediate relief from the punitive tariffs currently affecting our industries,” Tau said in a statement.
A critical feature of the House bill is its retroactive benefit clause. This allows South African companies that have been paying standard “Most Favoured Nation” (MFN) duties—and in some cases, additional 30% “Liberation Day” tariffs—since October 2025 to apply for refunds once the bill is signed into law.
The stakes for South Africa are higher than for any other beneficiary. The country accounts for roughly 54% of all exports to the U.S. under AGOA. According to recent trade data, the impact of the program’s lapse was immediate and severe.
South Africa’s exports of vehicles and parts to the U.S. plummeted by 55% in late 2025 due to the sudden imposition of tariffs.
Trade unions estimate that approximately 93,000 South African jobs rely directly on AGOA, with over 420,000 linked to U.S.-SA trade more broadly.
Agriculture, chemicals, and high-value manufactured goods remain the primary beneficiaries of the tariff-free access.
Despite the House victory, the bill faces a more treacherous path in the U.S. Senate. Unlike the House version, a competing Senate bill introduced by Senator John Kennedy (R-La.) includes a mandate for a “full review” of the U.S.–South Africa bilateral relationship.
U.S. lawmakers have grown increasingly critical of Pretoria’s foreign policy, citing: Joint exercises with the Russian and Chinese navies.
Some Senate Republicans have suggested that the renewal should proceed without South Africa’s inclusion unless Pretoria shifts its geopolitical stance.
The legislation now moves to the Senate floor. If passed, it will head to the desk of President Donald Trump. While the administration has generally favored protectionist trade policies, President Trump has indicated a willingness to support a short-term AGOA extension while his trade team evaluates the program’s long-term future and South Africa’s eligibility.
