Pretoria: The Department of Trade, Industry and Competition (DTIC) Minister Parks Tau has expressed approval following the USA House of Representatives' nod to extend the African Growth and Opportunity Act (AGOA) Extension Bill. This legislation is pivotal as it provides eligible sub-Saharan African countries, including South Africa, with duty-free access to the vast US market.

According to South African Government News Agency, AGOA's renewal is expected to synergize with the implementation of the Africa Continental Free Trade Area, bolstering regional value chains and supporting American businesses reliant on AGOA imports. The extension aims to offer stability and predictability for businesses on both continents that depend heavily on this trade program.

The United States holds the position of the third largest export destination for South African goods, marking it as a significant trade partner. In 2024, the bilateral trade between South Africa and the US hit approximately $15 billion, with exports from South Africa at $8 billion and imports at $7 billion, leading to a trade surplus of $1 billion.

Minister Tau reiterated South Africa's appreciation for its enduring trade and investment relationship with the US, a partnership that has propelled mutual economic growth, industrialisation, and job creation. For over twenty years, AGOA has been instrumental, fostering thousands of jobs in both nations and ensuring stability across key sectors such as automotive, shipbuilding, agriculture, chemicals, and apparel.

Despite recent strains in bilateral relations, the department reaffirmed South Africa's commitment to engaging maturely on mutual concerns to achieve shared economic objectives. South Africa is noted as the largest sub-Saharan African importer of US goods and the top source of foreign direct investment from Africa to the US, playing an essential role in supplying raw materials for US supply chains.

The two countries are continuing discussions on an Agreement on Reciprocal Tariffs, aimed at fostering mutually beneficial trade and investment relations and addressing trade barriers that impact their bilateral trade.