Trump signs Agoa into law for another year and SA is included – so far

US President Donald Trump after signing a bill into law. Picture: AFP/NICHOLAS KAMM United States (US) President Donald Trump signed Agoa into law for another year on Tuesday night and the best news is that South Africa is included, a decision that carries significant implications for South Africa’s economy. The African Growth and Opportunity Act (Agoa) received a one-year extension from the US Senate and President Donald Trump on Tuesday, although there is still a chance that certain countries will be removed from the list of eligible nations if certain criteria are not met, Brendon Verster, senior economist at Oxford Economics Africa, says.

“Although the extension keeps Agoa alive for another year, its short duration only provides a temporary reprieve for some African nations.” The US Senate approved a one-year extension of Agoa, a slightly trimmed-down period from thethree-year extension the House of Representatives approved in mid-January. According to a statement by US trade representative, Jamieson Greer, Trump also signed the extension into law, which will now run to the end of 2026 with retroactive effect from 30 September 2025. Oxford Economics Africa earlier flagged that, should the Senate and House versions differ, a conference committee would be formed to resolve the differences, and both chambers must approve the final text.

Only then would the bill go to the President, who can sign it into law or veto it. However, the House concurred with the Senate’s one-year extension, allowing Trump to sign the bill into law. According to Greer, countries have to establish or make continual progress toward establishing a market-based economy, entrenching the rule of law, allowing political pluralism and the right to due process.

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In addition, countries have to eliminate barriers to US trade and investment, enact policies to eliminate poverty, combat corruption, and safeguard human rights. Greer also stated that “We must also make sure that the programme enhances US-Africa trade and will work with Congress over the next year to modernise the programme to align with President Trump’s America First Trade Policy.” “In our view, this means that certain countries may still be excluded after the extension if they do not meet the necessary requirements or, in any way, defy Trump’s ‘America First’ agenda,” Verster says.

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