United States Senator John Kennedy has introduced the African Growth and Opportunity Act Extension and Bilateral Engagement Act, known as Agoa 2.0, to renew the trade programme for two years. South Africa has been singled out for exclusion due to its ties with US adversaries, reported Johannesburg's Freight News.

The Bill was tabled in the Senate on 30 September, shortly after Agoa expired, affecting duty-free access for 32 sub-Saharan nations. Action stalled during a 43-day government shutdown, with the measure still before the Committee on Finance.

South Africa's Department of Trade, Industry and Competition disclosed the bill during a parliamentary briefing, saying negotiations with Washington continue and bipartisan support exists for reviving Agoa.

The legislation sets strict eligibility criteria, including democratic governance, rule of law, human rights protections, anti-corruption measures and open markets. It also incorporates Mr Kennedy's US-South Africa Bilateral Relations Review Act to address Pretoria's ties with Beijing and Moscow.

US concerns cited include China's infrastructure influence, Russia's war in Ukraine and South Africa's stance on Hamas. The bill mandates a presidential review of bilateral relations within 120 days, with reports to Congress on compliance and potential sanctions under Global Magnitsky standards.

Exclusion would revoke duty-free status for South Africa, threatening US$2.8 billion in annual exports. Automotive parts, citrus, wine and textiles would be hit, disrupting multimodal supply chains and raising freight costs.

Agoa, enacted in 2000, granted duty-free US market access to thousands of products from eligible African countries. South Africa has been a major beneficiary, particularly in automotive, agricultural and apparel sectors reliant on efficient port and rail networks.