US stops South Africa and Rwanda from AGOA trade benefits

The US government has announced that it will suspend South Africa and Rwanda from its duty-free trade program under the African Growth and Opportunity Act (AGOA).

US Trade Representative Jamieson Greer said on Monday that both countries did not meet AGOA's eligibility requirements.

He mentioned worries about human rights, corruption, and threats to US interests as reasons for this decision. This policy will start on 1 January 2027.

South Africa has been the biggest beneficiary of this program. In 2025, it exported about $1.7 billion worth of goods to the US under AGOA.

"President Trump found that the governments of Rwanda and South Africa are engaging in practices that are inconsistent with AGOA’s eligibility criteria," Mr Greer said in a statement.

He noted that these practices include "barriers that undermine American trade and investment and practices that pose a threat to US national security and foreign policy interests in the region."

But he did not give specific details about the trade barriers or the security and foreign policy issues involved.

AGOA, which is reviewed regularly, was extended in February by President Donald Trump. It began in 2000 and is a key part of US economic ties with sub-Saharan Africa.

Getting access to the US market without tariffs is seen as a big chance for over 30 African countries in AGOA. The agreement offers duty-free benefits for more than 1,800 eligible products.

This new rule is the latest action from the Trump administration against South Africa after wrongly accusing its government of persecuting white South Africans. The South African government has denied this claim.

The US is also upset with South Africa for its case against Israel at the International Court of Justice.

At the same time, the Trump administration is pressing Rwanda over its supposed support for the M23 rebel group in Congo.

Last week, South Africa’s Department of Trade, Industry and Competition said it was ready for a bad outcome from the AGOA eligibility review. President Cyril Ramaphosa had also said that the country should prepare for possibly being removed from the program. He noted that South Africa was already looking for new markets and signing new trade deals with other partners like China.

In a statement on Tuesday, Trade and Industry Minister Parks Tau said South Africa’s removal from AGOA was likely. He added that this does not mean the end of trade with the US.

Mr Tau explained that while AGOA is important to South Africa, it makes up only 1 percent of the country's total global exports, and a small portion of those go to the US.

He also mentioned that South Africa has 60 days to address the issues raised by the US. The government “recognises the concern that this decision may create for workers, exporters, businesses and communities linked to AGOA-value chains.”