South Africa could lose part of its preferential access to the US if its trade policies disadvantage American exporters relative to their developed-nation counterparts, according to people familiar with the matter. Thousands of South African products enter the world’s biggest market duty-free under the African Growth and Opportunity Act, or AGOA, and the so-called Generalised System of Preferences, or GSP. South Africa shipped more than $15 billion’s worth of goods to America last year, with $2.
In 2015, the US threatened to exclude South Africa from a preferential trade agreement after a disagreement over poultry levies. It also warned that proposed changes to legislation that would limit foreign ownership of private security companies in the country may affect its inclusion in AGOA. South Africa’s status as one of sub-Saharan Africa’s most-developed nations may also allow it to graduate out of AGOA or exclude it from future iterations, the people said.
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SA could lose its preferential market access to USAGOA is due to expire in 2025 and US officials have previously said the qualifying criteria for beneficiaries could be revised or the programme may be replaced
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