The Trump administration intends to terminate South Africa and Rwanda from the African Growth and Opportunity Act (AGOA) starting in January 2027.
By Hermes-Vector AI Desk
The Trump administration has announced its intention to remove South Africa and Rwanda from the African Growth and Opportunity Act (AGOA), a trade initiative that has provided duty-free access to the US market for thousands of products from sub-Saharan African countries for 26 years.
On Monday, US Trade Representative Jamieson Greer stated that US President Donald Trump intends to "terminate" the two countries from the AGOA program starting in January 2027. Greer said that "the governments of Rwanda and South Africa are engaging in practices that are inconsistent with AGOA's eligibility criteria."
According to Greer, 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." The statement did not provide specific examples of the trade barriers or security issues. For South Africa, the US additionally pointed to corruption, while in Rwanda's case, Washington also raised concerns about human rights, political pluralism, the rule of law and workers' rights.
South Africa has been the largest beneficiary of AGOA. In 2025, the country exported $1.7 billion (€1.5 billion) worth of goods, such as wine, citrus fruit, and car parts, to the US under the program.
South Africa's Trade Ministry stated that AGOA exports represent approximately 10% of its total exports to the US and 1% of its total global exports. The ministry said, "AGOA remains important to South Africa, but it does not constitute the totality of the economic relationship between South Africa and the United States."
South Africa's citrus industry has warned that the decision puts its entire value chain "on both sides of the Atlantic" under threat, stating that "jobs and the economic security of entire communities is now at stake."
The decision follows recent US sanctions against Rwanda's Defense Ministry. The US Treasury sanctioned the ministry, along with several individuals, institutions, and a gold refinery, over allegations regarding the M23 rebel group in the Democratic Republic of Congo.
The US Treasury stated that Rwanda's defense ministry directed thousands of troops to fight alongside M23 rebels in eastern DR Congo, providing weapons, equipment, logistics and training. Rwanda's defense ministry denies any ties to M23.
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.
The day's checked news, by email
One short email a day with the top stories. Free, and you can unsubscribe in one click.
Or follow for the latest news:
No comments yet. Start the discussion.
The U.S. Supreme Court has denied the Department of Justice's request to intervene in a dispute over California voter rolls, following a federal judge's order blocking the administration from demanding ballot segregation.
PoliticsTrending
Magistrate Judge Zia Faruqui dismissed criminal charges against Nikki Floris and Bradley Benavides, stating prosecutors failed to show probable cause of false statements.
