After 25 years and five American presidents, what went wrong with South Africa’s AGOA journey?

The announcement, however, has come with little surprise to trade observers, given the prolonged disagreements between the governments of both countries.

Since its establishment in 2000, AGOA has provided African exporters with preferential, duty-free access to the US market, the world’s largest economy, valued at approximately $33 trillion.

The Congressional Research Service (CRS), in its August 2026 report on the programme, explains that Congress designed AGOA to strengthen US-Africa trade and investment, promote economic growth through exports and encourage market-oriented reforms and respect for the rule of law.

Congress enacted the programme under the Trade and Development Act of 2000, which President Bill Clinton signed on May 18, 2000. South Africa became one of its leading beneficiaries, particularly in automotive manufacturing, agriculture, wine and other manufactured goods.

Clinton signed the Trade and Development Act of 2000 on May 18, 2000, establishing AGOA. The programme offered eligible sub-Saharan African countries preferential, duty-free access to the US market to promote exports, investment, industrialisation and economic growth.

Congress expanded AGOA through amendments in 2002 and 2004, increasing market access and strengthening apparel provisions. The 2004 legislation extended the programme through September 30, 2015. In 2006, Congress extended the third-country fabric provision, allowing qualifying African garment manufacturers to source materials outside the continent while retaining duty-free benefits.

On June 29, 2015, Obama signed legislation extending AGOA through September 30, 2025. The renewal introduced out-of-cycle eligibility reviews, giving Washington greater flexibility to investigate beneficiary countries. His administration used this mechanism against South Africa over restrictions on US poultry, pork and beef imports, although the dispute was resolved in March 2016.

In 2018, Trump suspended Rwanda’s duty-free treatment for apparel exports after the country maintained restrictions on imported secondhand clothing and footwear. Rwanda retained other AGOA benefits, but its apparel exports lost preferential treatment from July 31, 2018.

Biden maintained annual eligibility reviews. His administration terminated Ethiopia, Mali and Guinea from AGOA in 2022, followed by Gabon, Niger, Uganda and the Central African Republic in 2024, citing governance, human rights and rule-of-law concerns. The programme expired on September 30, 2025, without a new congressional extension.

Trump signed legislation on February 3, 2026, retroactively reauthorising AGOA through December 31, 2026. His administration subsequently called for modernisation and greater trade reciprocity. It also announced its intention on November 2, 2026, to terminate South Africa and Rwanda’s eligibility from January 1, 2027.

South Africa’s first major AGOA dispute with Washington came in 2015, when the US challenged restrictions on American poultry, pork and beef exports.

On July 21, Washington launched an out-of-cycle eligibility review. In November, President Barack Obama threatened to suspend South Africa’s agricultural benefits unless Pretoria addressed the trade barriers, particularly restrictions on US bone-in chicken that had kept it out of the market for 15 years.

After negotiations, the first shipment of US frozen chicken legs arrived in Durban on February 26, 2016. South Africa also addressed outstanding requirements involving pork and beef. On March 14, Obama revoked the planned suspension, allowing the country to retain its agricultural benefits.

Relations deteriorated during Donald Trump’s second presidency. At a May 2025 White House meeting, Trump raised allegations of discrimination against white South Africans and land seizures, which President Cyril Ramaphosa rejected.

Disputes over affirmative action, South Africa’s independent foreign policy and its genocide case against Israel further strained ties.

Despite the tensions, South Africa remained AGOA’s largest beneficiary by export value. However, its programme exports fell from about $4 billion in 2024 to $1.7 billion in 2025, according to figures reported by Reuters and cited by South African officials.

The 2025 figure represented roughly 10% of its exports to the US, while about 89% of US-bound exports entered under ordinary WTO terms.

In an October 28, 2026 letter, Trump gave South Africa 60 days’ notice of his intention to terminate its AGOA eligibility from January 1, 2027. He cited alleged shortcomings in tackling corruption and trade barriers, alongside concerns over Pretoria’s security relationships and foreign policy.

The US Trade Representative confirmed the decision on November 2. South Africa, meanwhile, said it would accelerate efforts to diversify export markets. Trade Minister Parks Tau told SABC News that the government would pursue opportunities across Africa, India, the EU and China to protect jobs.

The proposed termination would remove preferential tariff access for eligible South African goods, not end ordinary trade with the US.