Economy

US to Suspend South Africa and Rwanda From Duty-Free AGOA Trade Access

The United States will suspend South Africa and Rwanda from duty-free AGOA trade access on January 1, 2027, citing eligibility failures after an annual review.

The update

The United States has said it will remove South Africa and Rwanda from the African Growth and Opportunity Act (AGOA), a programme giving eligible African countries duty-free access to the US market, effective January 1, 2027. US Trade Representative Jamieson Greer said on Monday a review found both governments engaging in practices inconsistent with AGOA’s eligibility criteria, and President Donald Trump has notified Congress. South Africa, its largest beneficiary, exported about $1.7 billion of goods to the US under it in 2025.

Why it matters

Washington cited barriers to US trade and investment for both countries. For South Africa it also cited corruption and national security and foreign policy concerns; for Rwanda, human rights, the rule of law and workers’ rights. It follows US sanctions on Rwanda’s defence ministry over its alleged role in eastern DR Congo’s rebellion. Ties with South Africa are also strained over US claims about its treatment of white South Africans, which its government rejects, and its genocide case against Israel at the International Court of Justice, which Israel denies.

What to watch

Neither government had responded. South Africa’s trade department said last week it was prepared for a negative outcome and remained open to dialogue, noting AGOA exports are 10 percent of its exports to the US.

Sources

  • aljazeera.com — confirms the suspension date, Greer’s statement and South Africa’s $1.7 billion in programme exports
  • bbc.co.uk — confirms the notice to Congress, the eligibility findings and the concerns cited for both countries

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