US to remove South Africa and Rwanda from AGOA trade program

The United States has formally notified Congress and the governments of South Africa and Rwanda of its intention to remove both countries from the African Growth and Opportunity Act (AGOA) trade preference program, according to a November 2 statement by the Office of the United States Trade Representative (USTR).

Planned Termination and Stated Reasons

U.S. Trade Representative Jamieson Greer stated that the decision followed an annual interagency review which found both governments were engaging in practices inconsistent with AGOA's requirements. Greer said, “President Trump found that the governments of Rwanda and South Africa are engaging in practices that are inconsistent with AGOA's eligibility criteria.”

According to the USTR, these practices include "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."

Specific concerns cited by Washington include:

• Rwanda: The USTR identified concerns regarding the rule of law, political pluralism, internationally recognised workers' rights, human rights, and threats to U.S. national security.
• South Africa: The administration cited barriers to American trade and investment, corruption, and concerns over U.S. national security and foreign policy interests.

The planned termination is set to take effect on January 1, 2027.

Economic Impact and Regional Implications

South Africa is the largest beneficiary of the AGOA program. In 2025, the country exported approximately $1.7 billion worth of goods to the US under the program, including vehicles, agricultural products, clothing, and manufactured goods.

South African officials have expressed concern regarding the decision:

• Trade, Industry and Competition Minister Parks Tau said the government had submitted proposals to address American concerns and remained open to negotiations. He added that while AGOA is important, "it does not constitute the totality of the economic relationship between South Africa and the United States."
• The Citrus Growers' Association of Southern Africa (CGA) called the exclusion "a serious blow" to the industry, warning that "that entire value chain, on both sides of the Atlantic, is now under threat."
• South African Foreign Minister Ronald Lamola stated the country would not "surrender its sovereignty" to U.S. demands.

Rwanda's exposure is smaller, with U.S. imports from the country totaling approximately $44 million last year. The dispute involving Rwanda is linked to tensions regarding the conflict in eastern Democratic Republic of Congo; the US sanctioned Rwanda's defense ministry last week, accusing it of backing M23 rebels.

Why it matters

While the removal would not end ordinary trade between the US and these two nations, it could make affected exports more expensive by removing preferential tariff treatment. Experts suggest the loss could have regional repercussions, as several countries in the Southern African Development Community (SADC), such as Lesotho and Botswana, are part of the South African supply chain that provides goods for the US under AGOA.

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Sources

• africa.businessinsider.com: After months of speculation, US finally shuts out South Africa, Rwanda from trade benefits across its $33 trillion market as Trump finalises AGOA decision | Business Insider Africa
• semafor.com: Trump cuts South Africa, Rwanda from AGOA trade program | Semafor
• dw.com: US to drop South Africa, Rwanda from AGOA trade program
• mymotherlode.com: Trump administration will cut South Africa and Rwanda from the AGOA trade program - myMotherLode.com
• yahoo.com: US to exclude South Africa, Rwanda from Africa duty-free trade deal
• hoodline.com: US Suspends South Africa, Rwanda From AGOA Trade Deal

This article was drafted with AI assistance and checked against the sources above. Company claims are reported as claims. Cover image is AI-generated.