SACU pushes for AGOA extension amid US tariff hurdles
Ogone Tlhage
The Southern African Customs Union (SACU) is ramping up diplomatic efforts to extend the African Growth and Opportunity Act (AGOA), which is set to expire in September 2025, according to finance minister Ericah Shafudah.
Speaking at the SACU summit in Windhoek, Shafudah underscored the critical importance of AGOA to the regional bloc’s economic stability and growth. AGOA offers eligible countries duty-free access to the US market for thousands of products, subject to meeting specific eligibility criteria. This preferential access has made it a cornerstone for trade, job creation, and revenue generation within the SACU region.
“You may recall that on the trade front, the AGOA arrangement is coming to an end in September 2025. SACU has greatly benefitted from this arrangement in terms of market access, job creation and revenue generation for our national fiscus, as highlighted in the presentation made by the Trade Law Centre (TRALAC) during our May 2025 meeting in South Africa,” said Shafudah.
“We are confident that the ministers of trade, as part of the broader bilateral engagements with the United States, will negotiate for a possible extension of AGOA. Of course, we are aware this will be a major challenge, but we have full confidence that these engagements will yield positive outcomes. We remain available as the Council to provide any necessary policy and strategic support to this process,” she added.
The Trump Tariffs
Shafudah also addressed the implications of the recent tariff hikes announced by US President Donald Trump.
Trump stated in June that the increased tariffs aim to encourage US consumers to buy more American-made goods, boost tax revenues, and stimulate investment.
AGOA’s most recent renewal, from 2015 to 2025, marked its longest extension yet. While not a trade agreement per se, AGOA is a unilateral and non-reciprocal set of preferences enshrined in US law. Its built-in sunset clause means all preferences will end on 30 September 2025 unless renewed by an act of Congress and signed into law by the President.
“Our Retreat and this 52nd Council meeting take place against the backdrop of our recent meeting in South Africa on the implications of the US’s tariff stance. It was imperative for the Council to explore ways to mitigate the challenges this poses,” Shafudah said.
“As the Council, we look forward to receiving regular updates, as agreed, as bilateral engagements with the US continue. This is a critical period for SACU as we navigate these challenging times.”
The Southern African Customs Union (SACU) is ramping up diplomatic efforts to extend the African Growth and Opportunity Act (AGOA), which is set to expire in September 2025, according to finance minister Ericah Shafudah.
Speaking at the SACU summit in Windhoek, Shafudah underscored the critical importance of AGOA to the regional bloc’s economic stability and growth. AGOA offers eligible countries duty-free access to the US market for thousands of products, subject to meeting specific eligibility criteria. This preferential access has made it a cornerstone for trade, job creation, and revenue generation within the SACU region.
“You may recall that on the trade front, the AGOA arrangement is coming to an end in September 2025. SACU has greatly benefitted from this arrangement in terms of market access, job creation and revenue generation for our national fiscus, as highlighted in the presentation made by the Trade Law Centre (TRALAC) during our May 2025 meeting in South Africa,” said Shafudah.
“We are confident that the ministers of trade, as part of the broader bilateral engagements with the United States, will negotiate for a possible extension of AGOA. Of course, we are aware this will be a major challenge, but we have full confidence that these engagements will yield positive outcomes. We remain available as the Council to provide any necessary policy and strategic support to this process,” she added.
The Trump Tariffs
Shafudah also addressed the implications of the recent tariff hikes announced by US President Donald Trump.
Trump stated in June that the increased tariffs aim to encourage US consumers to buy more American-made goods, boost tax revenues, and stimulate investment.
AGOA’s most recent renewal, from 2015 to 2025, marked its longest extension yet. While not a trade agreement per se, AGOA is a unilateral and non-reciprocal set of preferences enshrined in US law. Its built-in sunset clause means all preferences will end on 30 September 2025 unless renewed by an act of Congress and signed into law by the President.
“Our Retreat and this 52nd Council meeting take place against the backdrop of our recent meeting in South Africa on the implications of the US’s tariff stance. It was imperative for the Council to explore ways to mitigate the challenges this poses,” Shafudah said.
“As the Council, we look forward to receiving regular updates, as agreed, as bilateral engagements with the US continue. This is a critical period for SACU as we navigate these challenging times.”
