AGOA Extended to 2026 — But Uncertainty Remains for SA Exporters

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The African Growth and Opportunity Act (AGOA) has been extended to 31 December 2026, following US President Donald Trump’s signature on 3 February 2026. The renewal, which is retroactive to its expiry on 30 September 2025, restores duty-free access to the US market for select African exports, including vehicles, clothing, and agricultural products.

South Africa’s participation remains intact, but the short extension period and strained diplomatic ties have raised questions about future inclusion. Trade Minister Parks Tau welcomed the temporary relief but warned that the limited timeframe creates uncertainty for exporters and investors. He also highlighted the 30% US tariff still imposed on South African goods, which significantly reduces the practical benefits of AGOA.

Tau confirmed that South Africa is engaging the US on a longer-term trade agreement, including negotiations around an Agreement on Reciprocal Tariffs (ART). Meanwhile, the US Trade Representative has signalled plans to modernise AGOA, suggesting that future access could become more conditional on broader US trade and political priorities.

What Business Accountants Should Know

• AGOA benefits apply again — but only until end-2026

• The 30% tariff still applies, affecting real savings for exporters

• South African exporters should prepare for possible changes or exclusions beyond 2026

• US policy is shifting toward more demanding trade conditions

If your clients or business relies on US market access, now is the time to reassess export strategies and monitor policy developments closely.

Article source: Moneyweb