The FW de Klerk Foundation welcomes the renewal of the African Growth and Opportunity Act (“AGOA”) until 31 December 2026 as a measure that restores short-term certainty for South African exporters, as well as the workers and communities who depend on access to the United States market. After months of uncertainty, the reauthorisation provides a measure of predictability in a volatile global trade environment.

AGOA has, for more than two decades, supported key sectors of the South African economy, particularly automotive manufacturing, agriculture and textiles. Its renewal avoids an immediate shock to value chains that sustain thousands of jobs, especially in industrial hubs and rural communities. In this sense, continuation is preferable to termination and should be recognised as such.

However, the Foundation emphasises that AGOA’s renewal is not a cure-all. The continued application of broad US tariffs significantly undermines the practical benefits of the programme. A 30% reciprocal tariff on most South African exports, a 25% tariff on vehicles and automotive components and a 50% tariff on steel and aluminium effectively erode the preferential access that AGOA is designed to provide. For several sectors, the result is that duty-free status exists largely on paper, while competitiveness is lost in reality.

The consequences are already visible. Automotive exports to the US have declined sharply, threatening jobs and supplier networks. Agricultural producers, particularly in citrus, wine and nuts, face growing uncertainty about future shipments and market share. Smaller manufacturers and exporters are squeezed by higher costs and reduced margins, limiting their ability to grow and employ more South Africans.

These developments intersect directly with South Africa’s constitutional commitments. Section 22 of the Constitution guarantees the right to choose one’s trade, occupation or profession freely, while the Preamble commits the state to improving the quality of life of all citizens. Trade arrangements that restrict market access and weaken job creation place pressure on these foundational promises. Equally, section 9(2) reminds us that economic policy must advance equality in a sustainable, inclusive manner.

Christo van der Rheede, Executive Director of the FW de Klerk Foundation, said: “AGOA’s renewal offers welcome breathing room, but it does not remove the underlying constraints facing our exporters. Temporary certainty must be used wisely to protect jobs now and to build more resilient, diversified trade relationships for the future.”

Ismail Joosub, Manager of Constitutional Advancement, added: “This moment is a constitutional reminder that dignity, equality and economic freedom are inseparable. South Africa cannot rely indefinitely on external preferences; we must pursue trade diversification and domestic reforms that unlock opportunity, competitiveness and broad-based inclusion.”

The FW de Klerk Foundation, therefore, calls for a pragmatic, principled response: leverage AGOA’s continuity while urgently pursuing diversified markets, constructive diplomacy and domestic policies that are firmly grounded in constitutional values and long-term economic resilience.