AmCham South Africa responds to US decision to end South Africa’s AGOA eligibility from 2027

The American Chamber of Commerce in South Africa (AmCham SA) notes with disappointment yesterday evening’s announcement by the Office of the US Trade Representative that the US administration intends to end South Africa’s preferential access to the US market under the African Growth and Opportunity Act (AGOA). The removal applies to South Africa and Rwanda only and takes effect on 1 January 2027. AGOA itself remains in force, having been reauthorised through the end of 2028.

Losing AGOA removes a preferential tariff benefit; it does not stop trade between the two countries. Analysis by XA Global Trade Advisors puts AGOA’s net tariff preference for South Africa at about 3.5%, set against a much heavier tariff environment, with annual duty savings of under R2 billion concentrated in a small number of companies. The exposure is concentrated rather than broad: automotive carries the largest employment risk, and citrus, wine, table grapes and nuts are the most affected agricultural lines.

What AmCham SA’s research shows

AmCham SA’s 2025–2026 study with DNA Economics, which surveyed 52 US firms operating in South Africa, found that 96% use the country as a regional hub for African markets, and 63% rate that role as ‘very important’ or ‘critical’ to their business. The Chamber estimates that more than 500 US firms operate in South Africa, with an average of 40 years in the market. The relationship is also two-way: when services and investment income are included, the US records a consistent surplus with South Africa.

Looking ahead

AmCham SA encourages both governments to keep dialogue open at every level. South Africa has 60 days to make representations before the removal takes effect, and the annual eligibility review leaves a path to reinstatement open.

ENDS

About AmCham South Africa

The American Chamber of Commerce in South Africa is a representative of US business interests, dedicated to facilitating investment, bilateral trade, and other impactful business exchanges that drive economic and social prosperity in South Africa. With the US being South Africa’s largest portfolio investor and the third-largest overall trading partner, we are committed to fostering enduring partnerships that contribute significantly to the growth and success of both nations.

Issued by:

American Chamber of Commerce South Africa