The United States has notified South Africa and Rwanda of its intention to terminate their eligibility for the African Growth and Opportunity Act (AGOA), a trade programme that provides qualifying sub-Saharan African countries with duty-free access to the US market.
The announcement was made on November 2 by US Trade Representative Jamieson Greer, following President Donald Trump’s notification to Congress and the two governments. The proposed termination is scheduled to take effect on January 1, 2027.
Washington Cites Trade and Security Concerns
In a statement published by the Office of the United States Trade Representative, Washington said the two countries had engaged in practices it considered inconsistent with AGOA’s eligibility requirements.
For South Africa, the US cited barriers to American trade and investment, corruption, and concerns relating to its national security and foreign policy interests.
Regarding Rwanda, the administration raised concerns about trade and investment barriers, the rule of law, political pluralism, workers’ rights, human rights and regional security.
The announcement follows an annual review of eligible sub-Saharan African countries conducted by the US Trade Representative’s office.
Potential Implications for African Exports
AGOA, established in 2000, gives eligible African countries preferential access to the US market for thousands of products. It has been an important trade arrangement for industries including agriculture, manufacturing and textiles.
According to Reuters, South Africa exported approximately $1.7 billion worth of goods to the US under the programme in 2025. These included automotive components, citrus products and wine.
Rwanda also uses the arrangement to support exports such as coffee and minerals, although some of its apparel exports had already faced US restrictions since 2018.
The proposed termination could therefore affect exporters that depend on preferential access to American buyers, depending on the products involved and the trade arrangements available after the change takes effect.
South Africa Responds to the Proposed Decision
South Africa has said it will support industries that could be affected while continuing to pursue trade with the United States and diversify its export markets.
The proposed termination is not an immediate suspension of all trade between the countries. It concerns preferential access under AGOA, meaning affected exports could face different tariff conditions if the termination takes effect.
The notification also leaves room for further diplomatic engagement before the proposed January 2027 deadline.
