US House committee approves Africa trade bill, no mention of South Africa exclusion for now

On Wednesday, a U.S. House committee voted to approve a bill that would extend Washington’s preferential trade program for Africa for another three years. Notably, there was no immediate mention of excluding South Africa, a possibility previously suggested by the U.S. trade envoy.

The African Growth and Opportunity Act (AGOA), first enacted in 2000, allows eligible Sub-Saharan African countries and products to access the U.S. market duty-free. The program expired in September, with an estimated hundreds of thousands of African jobs depending on its continuation.

Earlier this week, U.S. Trade Representative Jamieson Greer indicated that the Trump administration was open to a one-year extension of AGOA but hinted that South Africa could be excluded due to what he described as a “unique problem.”

Despite these concerns, the U.S. House Committee on Ways and Means approved the AGOA Extension Act with a decisive 37-3 vote. The committee emphasized that AGOA has been a crucial element in strengthening economic ties between the U.S. and Sub-Saharan Africa. A statement issued by the committee further warned that "an extended lapse in AGOA would create a void that malign actors like China and Russia will seek to fill."

The bill now moves to the full House of Representatives for consideration, though the timeline for that debate remains uncertain.

South Africa Fights to Retain AGOA Status

South Africa is vigorously advocating for its inclusion in any extension of AGOA, despite a strained relationship with the U.S. under President Trump’s second term. The Trump administration has criticized South Africa’s policies on racial inequality, and U.S. officials have pointed to the country’s high tariffs and non-tariff barriers on U.S. products as key obstacles to a reduction in the 30% duties imposed on South African goods in August.

In response, South Africa’s trade ministry has denied the U.S. administration's claims, stating that the tariffs were based on an inaccurate understanding of the two countries' trade relations. South African officials have made it clear that they are closely monitoring the progress of the AGOA Extension Act and are doing everything possible to secure the country's place in the renewed program. -Nellie Peyton and Alexander Winning and Aaron Ross Additional reporting by Sfundo Parakozov and Daphne Psaledakis/Reuters