The U.S. will cut South Africa and Rwanda from the African Growth and Opportunity Act on January 1, 2027, citing concerns over trade barriers and national security.
The Trump administration will remove South Africa and Rwanda from the African Growth and Opportunity Act (AGOA) trade program at the end of the year, according to the Office of the U.S. Trade Representative. The suspensions are scheduled to take effect on Jan. 1, 2027.
U.S. Trade Representative Jamieson Greer stated that the two countries were removed because of policies that “include, but are not limited to, barriers that undermine American trade and investment and practices that pose a threat to U.S. national security and foreign policy interests in the region.” The official statement did not provide specific examples of these trade barriers or security issues.
Regarding Rwanda, the decision follows U.S. sanctions against Rwanda’s defense ministry last week over its alleged support of the M23 rebel group in the Democratic Republic of the Congo. In South Africa, the administration has accused the government of being anti-American due to its diplomatic ties with Iran and its criticism of Israel, and has made claims regarding the country's treatment of minority white farmers, which the South African government has denied.
AGOA was introduced in 2000 to provide certain African nations with duty-free access to the American market for specific goods. To maintain membership, countries must meet requirements such as establishing a market-based economy, the rule of law, political pluralism, and the right to due process.
South Africa is the largest beneficiary of the program, exporting approximately $1.7 billion worth of goods under AGOA in 2025, including agricultural products and vehicles. Rwanda's U.S. imports totaled approximately $44 million last year. Experts suggest the loss of AGOA could impact the broader Southern African Development Community (SADC) region, as countries like Botswana and Lesotho are part of South African supply chains.
South African Trade Minister Parks Tau said the “decision does not define the broader relationship” between the two nations and noted that South Africa would continue to pursue economic opportunities with the U.S. South African Foreign Minister Ronald Lamola stated the country was preparing for a "worst-case scenario" but would not "surrender its sovereignty" to U.S. demands.
U.S. Ambassador to South Africa L. Brent Bozell III stated on X that the suspension resulted from South Africa's failure to enact specific policy changes, including dropping affirmative action requirements for U.S. businesses and repealing a land law regarding expropriation without compensation. U.S. Rep. Richard Neal, the top Democrat on the House Ways and Means Committee, stated the move against South Africa, the program's top exporter, could "cause chaos to the U.S. economy."
Sources
This article was drafted with AI assistance and checked against the sources above. Company claims are reported as claims. Cover image is AI-generated.
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