US threatens South Africa, Rwanda with duty-free trade suspension

South Africa President Cyril Ramaphosa together with President Donald Trump at the White House last year

THE United States has said it will suspend South Africa and Rwanda from duty-free trade benefits under the African Growth and Opportunity Act (AGOA), effective January 1, 2027.

US Trade Representative Jamieson Greer said on Monday that both countries had failed to meet AGOA’s eligibility criteria. South Africa has been the largest beneficiary of the programme, exporting about $1.7 billion worth of goods to the US under AGOA in 2025.

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

There was no immediate response from either country.

AGOA beneficiaries are expected to meet eligibility requirements covering progress towards market-based economies, good governance and the elimination of barriers to US trade and investment, with Washington reviewing their eligibility annually.

South Africa’s Department of Trade, Industry and Competition said last week 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 per cent of the country’s total exports to the US and one per cent of its total global exports, it noted.

South African President Cyril Ramaphosa had also said in recent weeks that his country must prepare for being cut out of the programme, and that it was already seeking new markets and signing new trade deals with other partners such as China.

South Africa’s main exports to the US include precious stones and metals, motor vehicles, iron and steel. Its exports under AGOA are mainly motor vehicles and parts, as well as farm products and wine.

Rwanda’s main exports to the United States include coffee, tea and minerals. —Reuters

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