President Ramaphosa: South Africa should prepare for exclusion from AGOA — The Hindu

South African President Cyril Ramaphosa said the country should prepare for possible exclusion from the US preferential trade programme, the African Growth and Opportunity Act (AGOA). He said this on 19 October in Johannesburg amid deteriorating relations between Pretoria and Washington, The Hindu reports.

AGOA grants preferential access to the US market to sub-Saharan African countries that meet the programme's criteria. It has been extended until the end of 2028. South Africa is the programme's largest beneficiary, but its eligibility has come under increased scrutiny from Washington.

The decision depends on the US executive branch

According to Ramaphosa, the US Congress decided to keep South Africa in the AGOA programme, but a decision by the executive branch and the signature of President Donald Trump are now required. The US president reviews countries' eligibility for the programme annually.

Ramaphosa noted that South Africa would not be the first country excluded from AGOA. For such a decision, Washington must notify Congress and the relevant country 60 days in advance. For the exclusion to take effect on 1 January, it must be announced by 2 November.

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Risks for the automotive industry

The South African president said the government would seek alternative markets to reduce the consequences of a possible exclusion. At the same time, he acknowledged that the impact of such a move would be “devastating.”

Under AGOA, cars from South Africa are exempt from duties in the United States. According to South Africa's tax authorities, after precious metals, cars are the country's second-largest source of export revenue in the US market. In 2025, the automotive industry employers' organisation Naamsa estimated that 86,000 jobs at car manufacturers and 125,000 jobs including subcontractors were directly linked to the agreement.

Relations between South Africa and the United States have deteriorated since Trump took office. Washington has, among other measures, imposed visa restrictions on South Africans who, according to the US side, support racial discrimination, incite violence or facilitate land confiscation without compensation. South Africa denies these claims.