Many South African exporters have been benefitting from preferential trade agreements internationally. The African Growth and Opportunity Act (AGOA) trade agreement with the United States has been one of the most significant ones for South African exports since it was enacted in 2000.
The USA announced on the 2nd November 2026 that they have decided to terminate South Africa’s AGOA eligibility, which will come into effect from the 1st January 2027. The decision follows months of friction and disagreements between the USA and South Africa over areas related to trade and investment barriers, corruption, and land reform.
Many South African exporters have been relying on AGOA in order to be competitive in the American market, but in losing this preferential trade agreement it will likely mean that there will be higher export costs, increased prices for US buyers, and increased pressure on South African businesses to be competitive against other international suppliers. This comes as a big blow to South Africa. But all is not lost because there are several other trade agreements available to South African exporters that give preferential access to international markets, including the new zero-tariff agreement with China.
We will list and explain some of the alternatives available below.
China-Africa Economic Partnership Agreement (CAEPA)
The China-Africa Economic Partnership Agreement (CAEPA) became effective at the start of May 2026 and is valid until 30 April 2028, and it is an agreement that offers zero tariffs for thousands of qualifying line items being exported to China from South Africa. To qualify, an item needs to have a valid certificate of origin showing that the product originates in South Africa. This agreement is important for South Africans because it gives exporters the opportunity to improve their competitiveness in China.
However, zero tariffs do not mean that every shipment automatically qualifies. South African exporters must meet the rules of origin and provide the necessary documentation to show that their products originate in South Africa in order to qualify. Some products are subject to tariff-rate quotas, so exporters ought to check the applicable tariff schedule before relying on duty-free treatment.
In order to benefit from this zero-tariff scheme, South African exporters need to:
- Show that their product is listed under the eligible tariff schedule
- Ensure that the product meets the applicable rules of origin by providing a valid certificate of origin
- Documentation must be properly completed and submitted for customs clearance in China
Incorrect classification, insufficient origin information or missing documentation can result in delays or the loss of preferential tariff benefits.
Southern African Customs Union (SACU)
The Southern African Customs Union (SACU) allows duty-free movement of qualifying goods between the following five member countries:
- South Africa
- Botswana
- Lesotho
- Namibia
- Eswatini
SACU provides fairly straightforward access to neighbouring markets for South African exporters.
SADC Free Trade Agreement
The Southern African Development Community (SADC) Free Trade Area offers preferential trade access between the member states. Its purpose is to reduce customs duties on qualifying goods traded within the region in order to help businesses to have access to neighbouring African markets at competitive prices. SADC provides opportunities for South African exporters to expand into the following countries:
- Botswana
- Namibia
- Eswatini
- Lesotho
- Mozambique
- Zambia
- Zimbabwe
- Malawi
- Tanzania
The SADC agreement covers a wide variety of products; however, preferential access is dependent on the applicable tariff schedules and rules of origin.
SADC-EU Economic Partnership Agreement (EPA)
The SADC-EU Economic Partnership Agreement offers preferential market access between the European Union (EU) and the participating SADC EPA countries, which include:
- Austria
- Belgium
- Bulgaria
- Croatia
- Cyprus
- Czech Republic
- Denmark
- Estonia
- Finland
- France
- Germany
- Greece
- Hungary
- Ireland
- Italy
- etc.
This is significant for South African exporters because it offers preferential access to countries in the EU. This agreement is intended to support trade and economic development between the participating economies. South African exporters are able to benefit from reduced or eliminated import duties on certain qualifying products going into the EU, as long as they meet the product-specific rules of origin.
For exporters to the EU, a EUR.1 certificate is used to claim preferential tariff treatment, where applicable. This includes the SADC-EU EPA. The EUR.1 provides evidence that the exported goods satisfy the required rules of origin.
SACUM-UK Economic Partnership Agreement
After Brexit, South Africa and its regional partners created a separate Economic Partnership Agreement with the UK. Other than the UK, the SACUM-UK EPA covers the following member countries:
- South Africa
- Botswana
- Lesotho
- Namibia
- Eswatini
- Mozambique
This agreement mainly maintains the preferential trade arrangements that had existed in the previous EU framework. This allows qualifying products being exported to the UK to keep on benefitting from reduced or zero customs duties.
As with other preferential agreements, exporters need to comply with the relevant rules of origin and certification requirements.
EFTA-SACU Free Trade Agreement
The European Free Trade Association (EFTA) is made up of four member countries which are:
- Switzerland
- Norway
- Iceland
- Liechtenstein
This free trade agreement offers preferential access between the EFTA member countries and the SACU member states (mentioned above). The agreement covers a variety of different products.
This agreement offers opportunities for South African exporters to access high-value European markets through reduced or eliminated import duties on qualifying goods.
African Continental Free Trade Area (AfCFTA)
The African Continental Free Trade Area (AfCFTA) aims to improve intra-African trade, encourage investment, improve regional supply chains, and support industrial development across the continent.
For South African exporters, AfCFTA offers various opportunities to expand access to a wider market across Africa. Preferential trading under AfCFTA began in January 2024, and is still progressing as individual countries complete tariff schedules, rules of origin, and customs procedures.
Businesses wanting to export under AfCFTA should first check whether the destination country has implemented the necessary preferences and whether their goods meet the applicable rules of origin.
MERCOSUR-SACU Preferential Trade Agreement
MERCOSUR is a trading bloc that is made up of the following South American countries:
- Argentina
- Brazil
- Paraguay
- Uruguay
South Africa has a Preferential Trade Agreement through SACU with the MERCOSUR countries that offers tariff reductions on certain products. This trade agreement is limited in its scope, and only covers tariff reductions on specific products based on negotiations between the two trading blocs.
Although limited, the MERCOSUR-SACU preferential trade agreement does provide South African exporters with opportunities to access certain South American markets. Businesses ought to first research the applicable product schedules to determine whether their exports qualify for reduced customs duties or not.
Generalised System of Preferences (GSP)
The Generalised System of Preferences (GSP) is a unilateral trade arrangement that was designed for certain developed economies to offer developing countries preferential access to their markets. Countries with GSP programmes currently include:
- Japan
- Norway
- Switzerland
- Turkey and others
GSP benefits are determined by the developed country, and they also determine which developing country and products qualify – this may also change over time.
South African exporters should verify the current beneficiary status and product coverage of the relevant GSP programme before assuming that preferential duties are available.
How South African Exporters Can Make The Most Out Of The Trade Agreements
The loss of AGOA is naturally a concern for South African exporters; however, it is important to recognise that there are still many different opportunities to access international markets where a range of preferential trade arrangements are still available.
The new zero-tariff agreement with China is a particularly attractive opportunity for South African businesses looking to expand to international markets. This new agreement offers qualifying products to be able to enter the Chinese market without customs duties, which creates opportunities to improve competitiveness, attract new buyers, and develop stronger relationships with Chinese importers.
Navigating this new trade agreement can be daunting because exporters need to ensure that each part of the process is handled correctly in order to prevent hidden costs from piling up, avoidable delays, and any other unwelcome surprises from not having the right paperwork in place. At ImportExportLicense, we can help you to navigate China’s new zero-tariff agreement so that you can gain access to preferential market treatment.
Contact us today to begin benefitting from China’s zero-tariff arrangement and start exporting to China with confidence!
