Government has welcomed the extension of the African Growth and Opportunity Act (AGOA) by one year, after it expired last year.
The extension comes after US president Donald Trump signed the legislation, to extend the trade agreement from 20 September 2025 until 31 December 2026.
AGOA is a critical legislation that allows for eligible sub-Saharan African countries to enjoy duty-free access to the US market.
Following its expiry last year, there were uncertainties in the continental economies, resulting in many job losses.
“This extension will provide some relief to South African products exported under the scheme,” said Tau.
The minister acknowledged that the extension comes at a time when diplomatic tensions between the two countries are at their lowest, after Washington accused Pretoria of committing genocide against Afrikaners.
It also comes after the US imposed the 30% tariff on South African goods exported to the US.
Tau says the extension creates a platform for the country to continue engaging with the US, about how AGOA would pen out going forward, and its structure.
“That creates a platform for us to continue engaging with the US, in particular the Senate and Congress, about how AGOA would pen out going forward, what the structure would be, essentially how we would continue work.
But the statement that says AGOA has been renewed if only for one year, gives a sense of confidence that there is hope for further engagements with the US.
We continue to engage constructively with the US administration and believe that a healthy trade relationship benefits both our countries,” remarked Tau.
He however expressed concern about its short span.
“We are, however, concerned by the short nature of the extension, and we hope the United States will use this opportunity provided by the short extension towards a programme that will provide certainty around investment and purchasing decisions,” explained the minister.
