Add StudioX as a preferred source on GoogleThe United States intends to remove South Africa and Rwanda from its long-running duty-free trade initiative for sub-Saharan African nations starting in January 2027, according to a report by DW News.
US Trade Representative Jamieson Greer announced on Monday that President Donald Trump plans to terminate both countries’ participation in the African Growth and Opportunity Act (AGOA). Greer stated that the governments in Pretoria and Kigali are engaging in practices that fail to align with the program’s eligibility criteria.
According to the US official, the two African nations have introduced barriers that harm American commerce and investment, while pursuing activities that threaten US national security and regional foreign policy priorities. The official statement did not detail specific trade barriers or security issues.
Key Trade Initiative to Drop Major Beneficiaries
Created in 2000 under former US president Bill Clinton, AGOA has served as a cornerstone of economic relations between Washington and sub-Saharan Africa. The program grants duty-free entry to the American market for more than 1,800 products from over 30 eligible countries. To maintain access, nations must uphold an open market economy, eliminate trade obstacles for American businesses, and adhere to democratic principles, including the rule of law, human rights, and labour protections. Although the program undergoes regular review, President Trump previously extended it in February.
South Africa is the largest partner under the agreement, sending approximately $1.7 billion (1.5 billion euros) worth of goods to the US in 2025 under the initiative. Key exports include automotive parts, wine, and citrus fruit. South Africa’s Trade Ministry stated last week that it had prepared for the decision, noting that AGOA exports represent about 10 per cent of its total shipments to the US and just one per cent of its global exports. President Cyril Ramaphosa recently stated that South Africa must prepare for exclusion by expanding trade ties with alternative global partners, such as China.
The South African government noted that the US remains a key trading partner and committed to providing support for impacted sectors. However, South Africa’s citrus industry warned that its supply chain on both sides of the Atlantic is threatened, putting employment and community economic security at risk.
Security Sanctions and Economic Pressure
The move to exclude Rwanda follows increased economic pressure from Washington over Kigali’s alleged support for the M23 rebel group operating in the Democratic Republic of Congo. Last week, the US imposed sanctions on Rwanda’s Defence Ministry, which denies any connection to M23, as well as several individuals, institutions, and a gold refinery. Major Rwandan exports to the US include coffee and minerals.
Source: DW News
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