US House committee backs three-year AGOA renewal with no immediate move to exclude South Africa

US House committee backs three-year AGOA renewal with no immediate move to exclude South Africa
/ bne IntelliNews
By bne IntelliNews December 11, 2025

A key US congressional committee has approved a bill to renew the African Growth and Opportunity Act (AGOA) for a further three years, without any immediate reference to removing South Africa from the programme despite earlier warnings from the Trump administration.

AGOA, first enacted in 2000, provides duty-free access to the US market for eligible sub-Saharan African countries. Analysts estimate the programme supports several hundred thousand jobs across the continent, particularly in apparel, automotive manufacturing, agriculture and light industry. The scheme expired in September.

US Trade Representative Jamieson Greer said on Tuesday (December 9) the Trump administration was open to a one-year extension but suggested that South Africa could be excluded, calling the country a “unique problem” and pointing to unresolved market-access issues and wider political friction. South African officials have rejected US tariff actions in recent months, arguing they are based on an inaccurate understanding of bilateral trade.

Tensions between Washington and Pretoria have escalated over the past two years, driven by disagreements at the G20, South Africa’s stance on the Russia–Ukraine war, and political rhetoric within the United States.

Senior Republican lawmakers have repeatedly criticised Pretoria’s alignment with BRICS partners and its diplomatic positioning at multilateral forums, while South African officials have rejected US accusations of “anti-West” bias.

In 2024–25, several US political figures amplified claims accusing the South African government of enabling or ignoring “white genocide”, a narrative widely dismissed by analysts, human-rights organisations and Pretoria as misinformation.

These political flashpoints have contributed to calls in Washington for a stricter AGOA eligibility review, even as trade officials emphasise the need to preserve long-term economic ties.

According to the committee’s published statement, the House Committee on Ways and Means approved the AGOA Extension Act on Wednesday by a vote of 37–3. The statement described AGOA as a “cornerstone” of US–Africa economic relations and warned that a prolonged lapse would create space for “malign actors like China and Russia” to expand their influence on the continent.

The bill now moves to the full House of Representatives, though the timetable for consideration has not yet been confirmed.

US lawmakers remain divided over AGOA’s future, with some members arguing the programme remains strategically important in countering geopolitical competitors and others favouring tighter eligibility enforcement and greater conditionality for participating states. South Africa’s alignment with BRICS partners and domestic policy positions have attracted particular scrutiny in Washington.

Data from the US Trade Representative show that imports under AGOA were valued at about $9.7bn in 2023, dominated by in crude oil, motor vehicles and apparel. That compares with $3.8 trillion in total US imports, highlighting AGOA’s small footprint in US trade, even as it provides a vital source of export earnings and employment for African economies.

In 2024, US AGOA imports stood at just $8bn, and remained concentrated in a few countries and industries. Crude oil imports of $2bn accounted for 25% of AGOA imports last year, the bulk of it from Nigeria ($1.6bn). Non-energy imports in 2024 amounted to $6bn, dominated by South Africa and led by passenger vehicles ($2.4bn), apparel ($1.2bn), agricultural and food products ($949mn), base metals ($711mn), and chemicals ($251mn). 

Industry data from trade associations in South Africa, as well as Kenya, Lesotho, Madagascar and Ethiopia, among others, indicate that AGOA underpins export-oriented employment across multiple sectors. 

The US Senate’s legislative timetable on AGOA remains unclear, raising the possibility of further negotiations before a final vote. Trade experts say discussions over South Africa’s eligibility are likely to intensify, with Washington expected to seek concessions on market access, tariff alignment and political considerations in return for continued participation. Any final deal may require reconciling differences between Congress and the administration over the duration and terms of the extension.

South Africa’s trade ministry said it is closely monitoring the bill’s progress and is working to ensure the country remains eligible under any renewed AGOA framework.

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