US to strip South Africa and Rwanda of duty-free trade access

The United States has announced plans to strip South Africa and Rwanda of duty-free access to the American market at the end of 2026, escalating tensions between Washington and the two African nations over foreign policy and regional security.

Proposed Termination of AGOA Access

U.S. Trade Representative Jamieson Greer stated on Monday that President Donald Trump has notified Congress and both African governments of the intention to terminate their participation in the 26-year-old African Growth and Opportunity Act (AGOA). The decision follows an annual eligibility review, after which Greer said both nations were engaged in practices “inconsistent with Agoa’s eligibility criteria”.

Greer added, “These concerning and pervasive practices include, but are not limited to, barriers that undermine American trade and investment and practices that pose a threat to US national security and foreign policy interests in the region.”

For Rwanda, Washington cited concerns regarding "trade and investment restrictions, rule of law, political pluralism, workers’ rights and human rights."

For South Africa, the administration cited corruption, trade and investment barriers, and threats to U.S. national security and foreign policy interests.

Economic and Political Context

South Africa is the largest beneficiary of AGOA and the continent’s most industrialized economy. In 2025, the country exported approximately $1.7 billion of goods to the U.S. under the program, representing about 10 per cent of its exports to the U.S. and 1 per cent of its global exports. Officials estimate that up to 10,000 jobs could be at risk in an economy where unemployment exceeds 30 per cent.

South African President Cyril Ramaphosa called the potential loss "devastating" but noted that the country is seeking to expand trade with nations including China and India to hedge against deteriorating U.S. ties. South African trade Minister Parks Tau described the decision as "unfortunate," stating that Washington is raising new issues that had not featured in trade negotiations between the two countries which began in 2025.

In Rwanda, the decision follows recent U.S. sanctions imposed on October 28 against Rwanda’s defense ministry and Zigama Credit and Savings Society. The U.S. accused the Rwandan military of providing M23 rebels in eastern Democratic Republic of Congo with weapons, equipment, training, and logistical assistance. Rwanda has denied backing the rebels, with spokesperson Yolande Makolo stating that commitments by the DR Congo to “neutralise” a key militia under a U.S.-brokered peace deal remained “wholly unmet, and with no accountability”.

Historical Precedent

AGOA membership losses are not unprecedented. The program allows for reinstatement, but several countries have lost eligibility in recent years. The U.S. removed Uganda from AGOA following anti-gay legislation, and previously removed Burkina Faso, Gabon, Niger, and the Central African Republic following coups. Ethiopia also lost its benefits in 2022 due to concerns regarding the conflict in Tigray.

Rwanda previously lost AGOA access for its apparel exports in 2018 after it restricted imports of second-hand clothing. While other products like coffee, tea, and minerals retained duty-free access, the current proposed exclusion would be broader.

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Sources

• ft.com: US moves to strip South Africa and Rwanda of duty-free trade access
• hoodline.com: US Suspends South Africa, Rwanda From AGOA Trade Deal
• bbc.com: Trump to remove Rwanda and South Africa from US trade deal
• okayafrica.com: South Africa and Rwanda face AGOA suspension as generic HIV shot wins FDA approval
• chimpreports.com: Trump Moves to Expel Rwanda, South Africa from AGOA Programme | ChimpReports

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