South Africa Says US Raising ‘New Issues’ Beyond Trade Talks

South Africa said on Monday that the United States was raising “new issues” in trade negotiations, despite Pretoria making additional concessions in an effort to retain access to a US duty-free trade programme.

The dispute has left South Africa and Rwanda facing exclusion from the African Growth and Opportunity Act (AGOA), creating uncertainty for businesses and exporters that depend on preferential access to the American market.

South Africa is the programme’s largest beneficiary, but its eligibility has come under increased scrutiny as Washington heightens criticism of Pretoria. The US has also made allegations of discrimination against white Afrikaners, which the South African government has rejected.

Washington has pointed to what it describes as barriers to American trade and investment, corruption, and concerns about its national security and foreign policy interests.

South African Trade Minister Parks Tau said the latest issues raised by Washington had not formed part of previous discussions, which began in 2025.

“Government has put extensive efforts to constructively respond to the US concerns and has tabled beyond the 2015 concessions, additional concessions through the appropriate channels.

“These concessions respect due process, safeguard South Africa’s biosecurity and constitutional imperatives and its obligations under World Trade Organisation rules.

“It is, however, unfortunate that the US is now raising new issues that have not been the basis for discussions as part of the negotiations process that commenced in 2025,” he said in a statement.

The South African government also confirmed that Washington had given it 60 days’ advance notice of its intention to withdraw the country’s AGOA benefits, effective January 1, 2027.

It said the impact would vary across sectors and that it was working with affected industries to assess the implications and provide support on a company-by-company basis.

“Government recognises the concern that this decision may create for workers, exporters, businesses and communities linked to AGOA supported value chains.

“The impact will differ across sectors, and government is working closely with affected industries to assess the implications and will continue to provide appropriate support, on a company to company basis.

“As a responsible Government, South Africa has proactively retained measures that were availed as a response to the Reciprocal Tariffs,” the statement added.

Tau also stressed that AGOA, while significant to South Africa’s trade with the US, was not the only basis for the two countries’ economic relationship.

The programme allows eligible African countries to export certain goods to the US without paying duties. For South Africa, this includes vehicles, its second-largest export category to the American market after precious metals, according to the South African Revenue Service.

“AGOA remains important to South Africa, but it does not constitute the totality of the economic relationship between South Africa and the United States.

“In 2025, approximately 89% of South African exports to the United States entered under ordinary World Trade Organisation most favoured nation terms, while approximately 10% entered under AGOA, down from 28% in 2024.

“AGOA exports were valued at approximately US$1.7 billion in 2025, down from $4 billion in 2024. AGOA exports represented about 1% of South Africa’s total global exports,” the statement said.

The government said it would continue to diversify South Africa’s export markets through the Cabinet-approved Industrial Development Strategy and Butterfly Strategy, targeting opportunities across the African Continental Free Trade Area, India, the Southern African Development Community, the European Union, the United Kingdom, ASEAN, MERCOSUR and China.

It also disclosed that new market opportunities had been secured for South African citrus, avocados, grapes and apples.