South African President Cyril Ramaphosa is seeking a trade pact with Washington and new export destinations as South Africa prepares to lose preferential U.S. access under the African Growth and Opportunity Act (AGOA) in January 2027, BusinessDay reported. Washington announced this week that the suspension would take effect then, the outlet said.
Ramaphosa spoke to reporters Wednesday after casting a ballot in South Africa’s municipal elections. He said Democrats’ gains in the U.S. Senate and House could change the direction of international relations and expressed hope for improved ties with Pretoria, BusinessDay reported. Democrats won control of both chambers for the final two years of President Donald Trump’s term, according to the report. EconoTimes previously covered Ramaphosa’s view of Democrats’ control of Congress.
The president described the AGOA decision as a setback for South African trade but said commercial ties with the United States would continue. He said Pretoria’s response would include pursuing a bilateral trade agreement with Washington and seeking more destinations for South African exports. He also said expanding trade options had become necessary, BusinessDay reported.
AGOA gives qualifying African countries access to the U.S. market without import duties on thousands of goods, the outlet reported. South Africa is due to lose that preference. EconoTimes previously reported that Ramaphosa warned losing U.S. trade access could put South African jobs at risk.
The trade dispute comes amid wider strains in U.S.-South African relations since Trump returned to office in January 2025, BusinessDay reported. Since taking office, the Trump administration has reduced financial assistance to Pretoria, sent South Africa’s former ambassador home and taken steps to withdraw the country’s AGOA access. Trump has accused South Africa’s government of discriminating against white citizens and allowing white farmers to be persecuted. Pretoria rejects those claims and says fringe groups have promoted a false narrative, the outlet reported.
The suspension is scheduled to take effect in January 2027.
