Parks Tau Promises Government Support for South African Businesses Affected by AGOA Removal
- Trade Minister Parks Tau weighed in on the United States' decision to terminate South Africa's AGOA eligibility
- The Donald Trump administration announced on 2 November 2026 that SA would lose AGOA access from January 2027
- South Africans debated the minister's comments about the loss of AGOA, sharing mixed reactions to his views
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Source: UGC
Byron Pillay, a Briefly News journalist, has spent a decade reporting on South Africa's political landscape, crime, and social issues. He worked as a newspaper journalist for 10 years before transitioning to online journalism.
GAUTENG — Trade, Industry and Competition Minister Parks Tau has committed to government support for sectors facing disruption after the United States announced it would remove South Africa from the African Growth and Opportunity Act (AGOA) programme, effective 1 January 2027.
The Trump administration made the announcement on 2 November 2026, citing barriers to American trade and investment, corruption, and threats to US national security interests as grounds for terminating South Africa's eligibility.
Rwanda was also removed from the duty-free programme. AGOA-covered exports from South Africa were valued at roughly $1.7 billion in 2025, accounting for approximately 1% of the country's total global exports.
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Although Congress extended the legislation until the end of 2028, the White House determines annually which countries qualify for the programme.
Government to engage industries on a company-by-company basis
Tau acknowledged the concern the decision would create for workers, exporters, businesses and communities linked to AGOA value chains.
He said the government would work directly with affected industries to assess the impact and provide targeted support, engaging social partners to strengthen resilience, diversify export markets and protect jobs.
The minister also sought to contextualise the scale of the setback. In 2025, approximately 89% of South African exports to the US entered under ordinary World Trade Organisation most-favoured-nation terms, with only around 10% entering under AGOA, down sharply from 28% in 2024.
Overall bilateral trade between the two countries reached $28.8 billion in 2025, with more than 600 American companies operating in South Africa and supporting around 134,600 jobs.
How South Africans reacted to Tau's comments
Social media users were divided in their response to Tau's assurances.
@fescco welcomed the minister's approach, writing:
"Solutions like these are needed. Well done, Minister, and SA government."
@PhotocopieT added:
"US must keep their AGOA, and we will keep our sovereignty."
Others were more sceptical.
@ArashardS11593 wrote:
"You can't even support the ones you have to now; where are you going to support the ones you don't have to?"
@Bonganixaba3 stated:
"The same government that is always complaining about not having money."
@LB60967736 added:
"The government will promise anything right now for votes."
@geraldgeejoni claimed:
"South Africans will be jobless. Poor decision-making from the government."
Cyril Ramaphosa urges citizens to brace for AGOA loss
Briefly News previously reported that President Cyril Ramaphosa urged South Africans to brace for a potential exclusion from AGOA.
Ramaphosa warned that the impact on jobs would be 'devastating', with an estimated 250,000 positions linked to the initiative.
The announcement sparked varied reactions on social media, with some people supporting the statement and others criticising it.
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Source: Briefly News
