US pulls plug on South Africa and Rwanda under Agoa

What you need to know:

• Washington says the countries violate AGOA requirements
• Decision effective from January 2027
• South Africa is the largest AGOA beneficiary

US Trade Representative Jamieson Greer said on Monday that Washington will suspend South Africa and Rwanda from its flagship duty-free trade program for sub-Saharan Africa, a move that would hit exports including South African auto parts, wine and Rwandan coffee.

Greer notified Congress the two countries would be suspended from the African Growth and Opportunity Act (AGOA) from January 1, 2027, citing concerns about human rights, corruption and threats to US interests.

The program has been the centrepiece of US economic engagement with Africa since it was enacted in 2000, offering duty-free access to the US consumer market for thousands of products from eligible countries.

"President Trump found that the governments of Rwanda and South Africa are engaging in practices that are inconsistent with AGOA's eligibility criteria," Greer said in a statement.

The Trump administration has taken a series of measures against South Africa, accusing its government of persecuting white South Africans, an allegation Pretoria rejects.

South Africa has been the largest beneficiary of the US program, exporting about $1.7 billion worth of goods to the US under AGOA in 2025. Its main exports include car parts, citrus fruit and wine, while Rwanda's include coffee and minerals.

South Africa's trade ministry late on Monday said it would support sectors affected by the decision and continue pursuing trade, investment and shared economic opportunities with the United States.

"AGOA remains important to South Africa, but it does not constitute the totality of the economic relationship between South Africa and the United States," it said in a statement.

There was no immediate reaction from Rwanda.

Suspensions effective from January 2027

Washington said both countries were being suspended due 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."

It also highlighted concerns over human rights and the rule of law in Rwanda.

Experts said the decision to suspend Rwanda was most likely linked to the conflict in eastern Democratic Republic of Congo, where Washington says Rwanda is backing rebels.

The US has already imposed sanctions on a number of Rwandan individuals and institutions, including the military and a gold refinery.

Rwanda has been subject to a partial suspension since 2018 that does not allow it to export apparel under AGOA, due to import tariffs that the US considers a barrier to trade.

The top Democratic lawmaker on the House Ways and Means Committee criticised the Trump decision to remove South Africa.

"It’s yet another trade decision grounded in grievance that flies in the face of what responsible policy should be," said Representative Richard Neal, urging a more thorough explanation "and what steps South Africa can take to be reinstated to the program."

Measures against South Africa

Ebenezer Obadare, an expert with the Council on Foreign Relations, said South Africa could still export to the US, just on less favourable terms, and the US move would likely prompt African nations to diversify their trade strategies.

Even if the next US administration changed its approach, Washington could find that South Africa and others had found "new opportunities and new friends," including China, he said.

"I won't be surprised if they don't already have some alternatives lined up," he said. "Ten per cent is not a trivial number, but it's not 90 per cent, it's not 60 per cent"

The US has also criticised South Africa's foreign policy, in particular the genocide case it brought against Israel at the International Court of Justice. Israel denies genocide.

"It is regrettable that South African policies led to the termination of AGOA for South Africa," said the US ambassador to South Africa in a post on X.

"This was a predictable and preventable outcome resulting from the rejection by South Africa's government of real concerns raised by the US Government."

South Africa's trade ministry said that Washington remained an important trade and investment partner, but that it would accelerate the diversification of its export markets.

Exports under AGOA make up only about 10% of its total exports to the US and 1% of its total global exports, it noted.

President Cyril Ramaphosa had also said in recent weeks that South Africa must prepare for being cut out of the program, and that it was already doing so by seeking new markets and signing trade deals with partners such as China.