South Africa stands prepared for Washington’s upcoming decision on whether it will remain part of a critical trade programme that allows duty-free exports to the United States.

Trade Minister Parks Tau said on Thursday the government remains confident but ready for any outcome when the US announces its verdict on 2 November about South Africa’s continued participation in the African Growth and Opportunity Act (AGOA).

Largest beneficiary faces uncertain future

The country currently holds the position as the biggest beneficiary of AGOA, a scheme that grants African nations duty-free access to American markets. However, mounting tensions between Pretoria and Washington have placed this status under threat.

Tau addressed reporters in Johannesburg following a meeting with the country’s social dialogue forum, stating the government feels confident the US will “acknowledge, recognise and favourably respond to the very generous offers that SA has made during our ongoing negotiations over the last year or so”.

He argued that maintaining the trade relationship serves “the best interest of our two nations – the US and SA as well as partners in the African continent”.

Strained relations under Trump

Relations between the two countries have weakened significantly since President Donald Trump took office. Washington has reduced aid and publicly criticised President Cyril Ramaphosa, including unfounded accusations of a “white genocide” against Afrikaners in South Africa.

The US has also questioned South Africa’s treatment of white Afrikaners, claims which Pretoria firmly rejects. Last year, Washington launched a resettlement programme specifically for white South Africans who claim they face persecution and violent crime.

By 30 September, the US had granted refugee status to 16 287 South Africans under this programme over the previous year. Apart from five Afghans, they were the only people Washington admitted as refugees during that period.

ALSO READ: South African businesses celebrate as US-Africa trade lifeline secures extension

Deadline looms for decision

AGOA, which has been extended until December 2028, undergoes annual reviews for each participating country. The US president must provide 60 days’ notice to Congress and the affected country before removing access.

For any exclusion to take effect on 1 January, the announcement must come by 2 November.

Tau said South Africa has “engaged constructively” on all concerns raised by Washington but stressed that “some principles are not up for negotiation”. He added that Pretoria remains open to practical arrangements to boost trade and investment between the two nations.

Economic impact at stake

More than 600 American companies currently operate in South Africa, supporting approximately 134 600 jobs across the country. The US remains a valued trading partner despite the political tensions.

Tau assured the public that regardless of Monday’s outcome, South Africa’s economy will remain stable as the country explores alternative markets.

ALSO READ: South Africa seeks direct talks with US to ease tense diplomatic