Washington plans to end duty-free trade privileges for South Africa and Rwanda under the African Growth and Opportunity Act, known as AGOA. The change will take effect on January 1, 2027.
US Trade Representative Jamieson Greer said on Monday that both countries had not met the programme’s eligibility criteria. South Africa has been the largest beneficiary of AGOA, exporting about $1.7bn worth of goods to the US under the programme in 2025.
US cites trade barriers and governance concerns
Greer said in a statement that the US president had found the governments of both countries were engaging in practices inconsistent with the eligibility criteria. Neither country had responded immediately.
AGOA beneficiaries are expected to show progress towards market-based economies, good governance and the removal of barriers to US trade and investment. Washington reviews eligibility every year.
For Rwanda, Washington pointed to trade barriers, rule of law and human rights as areas of deep concern. Rwanda was also suspended from the programme in 2018.
Washington’s concerns over South Africa’s policies
With regard to South Africa, Washington said it was worried about barriers to US trade and investment, corruption, and threats to US national security and foreign policy interests. President Donald Trump’s administration has also cracked down on the country, which Trump says is persecuting white people. South Africa’s government calls this a falsehood spread by fringe groups.
The US has also objected to South Africa’s foreign policy, particularly the genocide case it brought against Israel at the International Court of Justice. Israel denies the genocide allegations.
South Africa prepares for exclusion from AGOA
South Africa’s Department of Trade, Industry and Competition said last week that it was prepared for a negative outcome of the review and remained open to dialogue with the US. It noted that AGOA exports make up only about 10 percent of the country’s total exports to the US, and 1 percent of its total global exports.
President Cyril Ramaphosa had also said in recent weeks that the country must prepare to be cut out of the programme. He added that South Africa was already seeking new markets and signing trade deals with other partners, including China.
South Africa’s main exports to the US include precious stones and metals, motor vehicles, and iron and steel. Its AGOA exports are mainly motor vehicles and parts, along with farm products and wine. Rwanda’s main exports to the US include coffee, tea and minerals.
