The United States has extended the African Growth and Opportunity Act (AGOA) until the end of 2028, providing greater stability for South African exporters in accessing the US market.
This extension comes after several months of uncertainty regarding the future of the trade program, which allows eligible African nations to export certain products to the United States without paying import duties. It is reported that US President Donald Trump signed this act on Wednesday.
Previously, the US House of Representatives approved the extension with 370 votes to 48 on Tuesday, following support from the Senate back in August. The AGOA program was established in 2000 to stimulate trade and investment between the US and African countries. Initially, the program was set to expire in September 2025, but it was later extended until the end of 2026.
Tensions Between South Africa and the US
The program's extension occurs against a backdrop of ongoing tension in relations between South Africa and the US. Both countries disagree on South Africa's foreign policy, including its ties with Russia, China, and Iran. Furthermore, South Africa has brought Israel's actions in Gaza before the International Court of Justice, which has heightened tensions with Washington.
In the US, there were also calls to exclude South Africa from the AGOA program. Some US lawmakers introduced bills requiring the exclusion of South Africa from the program and a review of Washington's relations with South Africa.