WASHINGTON, Nov 2 (Reuters) – US Trade Representative Jamieson Greer said on Monday that Washington intends to suspend South Africa and Rwanda from its flagship duty-free trade initiative for sub-Saharan African countries, commonly known as AGOA.
The African Growth and Opportunity Act has been the centerpiece 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, citing concerns about human rights, corruption and threats to US interests.
There was no immediate response from either country.
South Africa has been the largest beneficiary of the 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.
President Donald Trump’s administration has taken a series of measures against South Africa, accusing its government of persecuting white South Africans, an allegation Pretoria rejects as false.
SUSPENSIONS EFFECTIVE FROM JANUARY 2027
Beneficiaries of the US program are expected to adhere to eligibility requirements around maintaining market-based economies and good governance as well as eliminating barriers to US investments and trade.
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”, among other issues.
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.
The suspension will be effective from January 1, 2027, the US statement said.
Rwanda has already 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.
MEASURES AGAINST SOUTH AFRICA
The US has also taken issue with 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 last week that it was prepared for a negative outcome from the AGOA eligibility review and that it remained open to dialogue with the US. 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 programme, and that it was already doing so by seeking new markets and signing new trade deals with other partners such as China.
(Reporting by Bhargav Acharya and Daphne Psaledakis in Washington, Nellie Peyton in Johannesburg, Ammu Kammanpilly in Nairobi and David Lewis in London; Editing by Doina Chiacu, Alison Williams and Sanjeev Miglani)
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