AGOA trade benefits to end for South Africa and Rwanda after US review

The United States said Donald Trump will remove South Africa and Rwanda from a long-running Africa trade programme. The Office of the U.S. Trade Representative announced the decision on Monday. The move cited unmet eligibility rules, including trade barriers and links to U.S. foreign policy interests. The changes will start on Jan. 1, 2027.

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U.S. Trade Representative Jamieson Greer said Trump notified Congress and both governments. Greer said the two countries will lose AGOA access from Jan. 1 next year. The statement blamed policies that weaken American trade and investment. It also cited practices said to threaten U.S. national security interests.

AGOA trade agreement and eligibility rules

The African Growth and Opportunity Act, or AGOA, began in 2000 under Bill Clinton. It gives some African countries duty-free access for certain exports. Membership depends on set standards, including market-based reforms and the rule of law. Countries also must reduce barriers to U.S. trade and investment.

AGOA membership is reviewed every year, and more than 30 African nations are included. Many members see duty-free access to the U.S. market as vital support. Several countries have been removed from AGOA in earlier years. Under Joe Biden, some were cut for rights or democratic concerns.

South Africa AGOA decision and wider US pressure

For South Africa, the AGOA step adds to growing friction with Washington. Last week, the U.S. excluded South Africa from a Group of 20 foreign ministers meeting in Atlanta. U.S.-South Africa ties have fallen during Trump’s second term. The administration has accused South Africa’s Black-led government of anti-white policies.

The Trump administration has also criticised South Africa over Israel and ties with Iran. It has baselessly accused South Africa’s government of allowing widespread violence against minority white farmers. The U.S. also said affirmative action rules supporting Black ownership limit U.S. investment. South Africa has denied it is anti-white.

The U.S. pressed South Africa to make crime against farmers a priority crime. It also urged changes to affirmative action rules affecting U.S. firms. Washington also wanted a land law repealed. That law allows private land expropriation without compensation in some cases.

South African Foreign Minister Ronald Lamola said last month that South Africa was preparing for the worst-case scenario on AGOA. Lamola also said South Africa would not give up sovereignty to meet U.S. demands. There was no immediate government response after Monday’s U.S. statement. South African officials said last week removal was expected.

Rwanda AGOA suspension linked to regional security

The U.S. decision also affects Rwanda after recent steps tied to the conflict in eastern Congo. Last week, the U.S. sanctioned Rwanda’s defence ministry. Washington linked the sanctions to support for the M23 rebel group. The rebels are fighting government forces in mineral-rich eastern Congo.

The U.S. statement did not list specific trade barriers or security issues for either country. Greer said the reasons include, but are not limited to, barriers and security concerns. There was no immediate reaction from the Rwandan government. The statement added that countries can return to AGOA if they meet standards.

Greer said the Trump administration is working to ensure our African partners take the necessary steps to meet the eligibility criteria. Past removals under Biden included Burkina Faso, Gabon and Niger after coups. Uganda was also removed after adopting a strict anti-gay law. Reinstatement has remained possible under AGOA rules.

AGOA and official US remarks on South Africa policy changes

U.S. Ambassador to South Africa L. Brent Bozell III wrote on X that the decision followed policy disputes. Bozell said the suspension was due to South Africa not making requested changes. "This was a predictable and preventable outcome resulting from the rejection by South Africas government of real concerns raised by the US Government,\" the ambassador wrote.

The AGOA removals will take effect on Jan. 1, 2027, unless conditions change before then. The U.S. has not provided examples of the trade barriers it cited. South Africa and Rwanda have not issued immediate replies to Monday’s announcement. The decision leaves both countries facing a loss of duty-free access for selected exports.

With inputs from PTI