An examination of Bilateral Trade between South Africa and the United States: Trends, Opportunities, and Challenges (2017-2025)

Abstract

The study examines the bilateral trade relationship between South Africa and the United States of America from 2017 to 2025, focusing on trade trends, opportunities, and challenges. Since the end of apartheid in 1994, US-South Africa trade relations have changed considerably, facilitated by structures such as the African Growth and Opportunity Act (AGOA) and the Trade and Investment Framework Agreement (TIFA). These agreements have helped South Africa gain preferential access to US markets, particularly in the automotive, agricultural, and textile sectors. However, current geopolitical conflicts, uncertainties around AGOA’s restoration, and internal infrastructure challenges have strained this partnership. The study is grounded in World Systems Theory (WST) and Constructivism, presenting a bifurcated perspective on the drivers of trade flows and sectoral strengths. The study is based on desktop research and seeks to provide policymakers, investors, and scholars with invaluable insights by highlighting the relationships among trade policy, economic development, and international diplomacy. It stresses the importance of hands-on engagement and strategic planning to preserve and increase the mutually beneficial trade relationship between South Africa and the US in the context of an ever-changing international economic landscape.