US proposes bill to exclude South Africa from AGOA renewal
Cape Town etc, 26 November 2025
US proposes bill to exclude South Africa from AGOA renewal
US Senator John Kennedy has introduced a new piece of legislation that could have serious implications for South Africa’s trade relationship with the United States.
This bill, titled the AGOA Extension and Bilateral Engagement Act, was tabled at the end of September and aims to extend the African Growth and Opportunity Act (AGOA) for two additional years.
However, nestled within the legislation is a stipulation that explicitly excludes South Africa from participating in this crucial economic programme.
The AGOA programme, which has been in existence for 25 years, officially lapsed at the end of September 2023, prompting a range of concerns about the future of South Africa’s agricultural exports to the US.
The Department of Trade, Industry and Competition (DTIC) revealed the existence of Kennedy’s bill during a presentation to the portfolio committee on November 25, as per reports by Business Tech.
Since then, the US Senate has faced a 43-day government shutdown, stalling any further actions on this matter.
Despite Kennedy’s bill being sent to the Committee on Finance with no progress reported, there remains an underlying hope within South Africa’s trade circles that AGOA could yet be revived.
Both Republican and Democratic lawmakers have bipolar support for the renewal of AGOA, with the White House even expressing a preference for a one-year extension.
The DTIC noted that the expected renewal would likely include a rollover of current AGOA benefits for existing members, raising the possibility that South Africa might still retain its privileges under the programme, as per reports by Business Tech.
Kennedy, advocating his bill, stated that the AGOA programme is vital for countering China’s growing influence on the African continent. ‘China is using Africa to expand its influence at America’s expense,’ he commented.
‘We need to rethink our relationships in the region while strengthening trade with African countries that share our values,’ With such assertions, the senator has triggered concerns that South Africa’s inclusion might be contingent upon its alignment with US interests.
As the largest market for South African agricultural exports, the US represents a critical economic partner.
Wandile Sihlobo, Chief Economist at the Agricultural Business Chamber of South Africa (Agbiz), has highlighted that the US accounted for around 4% of South Africa’s total agricultural exports, valued at approximately USD 13.7 billion in 2024.
This year has already seen robust growth in these exports, particularly in the first half of 2023, when South Africa experienced a 26% increase in agricultural exports to the US during the second quarter amounting to USD 161 million, despite the looming presence of increased tariffs.
