Ramaphosa Wants Bilateral Trade Deal With US After South Africa’s Removal From AGOA

President Cyril Ramaphosa says South Africa wants to strengthen its trade relationship with the United States through bilateral negotiations following Washington’s decision to terminate the country’s eligibility for the African Growth and Opportunity Act (AGOA).

Speaking after casting his vote at Hyde Park in Johannesburg on Wednesday, Ramaphosa acknowledged that South Africa was disappointed by the decision but stressed that the country’s trade relationship with the US extends beyond the preferential trade programme.

Earlier this week, the United States announced its intention to terminate South Africa’s participation in AGOA, with the withdrawal of benefits scheduled to take effect on 1 January 2027, subject to the 60-day notice period.

Ramaphosa Calls For Bilateral Trade Negotiations

Ramaphosa described AGOA as a unilateral trade arrangement and said South Africa would prefer a bilateral agreement in which both countries negotiate mutually agreed trade rules and mechanisms.

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"We want to focus more on a bilateral trade agreement where both parties sit down and negotiate trade rules, trade mechanisms that in our view will enforce and reconfirm our own sovereignty as well as the sovereignty of the United States," he said.

The President emphasised that the US decision did not signal the end of trade between the two countries.

"Our trade relations with the United States don’t revolve around AGOA, we also have trade dealings with the US on a variety of products, which is outside AGOA," Ramaphosa said.

South Africa Faces Loss Of Preferential Market Access

The withdrawal of AGOA benefits will mean South African exporters lose preferential duty-free access to the American market from New Year's Day 2027.

The programme has allowed eligible African countries to export thousands of products to the US under preferential trade arrangements.

According to South Africa's Department of Trade, Industry and Competition, the country's AGOA exports were valued at approximately US$1.7 billion in 2025, down from US$4 billion in 2024.

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The department has acknowledged the potential impact on businesses, workers and industries linked to AGOA-supported exports.

Government has indicated that it will continue engaging Washington while accelerating efforts to diversify South Africa's export markets.

Government Says Trade With US Will Continue

Despite the impending loss of preferential access, the government maintains that the United States remains an important trade and investment partner.

South Africa has indicated that it wants a balanced and mutually beneficial relationship that allows both countries to continue pursuing trade and investment opportunities.

Ramaphosa's comments signal that Pretoria intends to pursue negotiations with Washington rather than allow the AGOA decision to define the broader economic relationship between the two countries.