The United States plans to remove South Africa and Rwanda from a major preferential trade programme for African exporters from 1 January 2027, a decision that could raise costs for businesses selling eligible goods into the American market.
United States Trade Representative Jamieson Greer announced the decision on Monday, 2 November, saying the two countries would lose eligibility under the African Growth and Opportunity Act, known as AGOA. Washington has notified Congress and the governments concerned, according to the announcement reported by Reuters and the Associated Press.
AGOA allows qualifying countries in sub-Saharan Africa to export specified products to the United States without the ordinary import duties. The arrangement has been important to manufacturers, agricultural exporters and other businesses seeking access to one of the world’s largest consumer markets. Losing eligibility does not prohibit exports, but it can remove a tariff advantage and make affected products less competitive.
The United States said the decision followed a review of whether the two governments met the programme’s conditions. Those conditions include progress towards a market-based economy, the rule of law, political pluralism, due process, human rights protections and the removal of barriers to American trade and investment.
Greer cited concerns about trade and investment restrictions and the alignment of the countries’ policies with American national security and foreign policy interests. Reuters reported that the United States also raised corruption-related concerns about South Africa and rule-of-law and human-rights issues concerning Rwanda. These are Washington’s stated grounds for the decision, not independent findings by Podium News.
South Africa is the programme’s largest beneficiary. Reuters reported that its exports to the United States under AGOA were worth approximately $1.7 billion in 2025. South Africa’s trade ministry said it had prepared for an unfavourable eligibility review and remained open to talks with Washington.
The ministry also indicated that AGOA shipments accounted for about 10 per cent of South Africa’s exports to the United States and roughly 1 per cent of its worldwide exports. Those proportions show why the consequences could be concentrated in particular exporting industries even though the programme represents a relatively small share of the country’s total trade.
The decision comes amid strained relations between Washington and Pretoria over trade policy and international affairs. The Trump administration has criticised South Africa’s foreign policy positions and made allegations about the treatment of white South Africans. Pretoria has rejected the persecution allegations. The countries have also differed sharply over South Africa’s case against Israel at the International Court of Justice, where Israel denies accusations of genocide.
Rwanda’s position under AGOA has been more restricted for several years. The United States suspended duty-free treatment for Rwandan apparel products in 2018 after a dispute over barriers affecting imports of used clothing and footwear. That earlier measure did not remove all of Rwanda’s other AGOA benefits, making the newly announced withdrawal a separate and broader eligibility development.
The African Growth and Opportunity Act was enacted in 2000 to encourage trade and investment links between the United States and eligible African economies. Participation is conditional rather than permanent. American authorities periodically review beneficiary countries, while Congress determines the wider legislative framework of the programme.
Under the existing framework, AGOA provides duty-free access for more than 1,800 products, in addition to other preferences available under the United States’ broader trade legislation. The benefits vary by product and by the country of origin, so the effect of losing eligibility depends on what a business exports and which tariff rules apply to those goods.
Exporters and their American customers will now need to assess the implications for orders scheduled to enter the United States after the proposed 1 January change. Businesses may face higher duties on previously qualifying shipments, while supply contracts and sourcing decisions could be affected. The precise cost for individual companies will depend on the goods involved and applicable tariff classifications.
The announcement also raises questions for other African countries that rely on predictable market access. Eligibility reviews are country-specific, and the withdrawal of South Africa and Rwanda does not mean that every AGOA beneficiary has lost its preferences. Nigeria and other participating countries remain subject to their own eligibility requirements and any applicable United States trade measures.
South Africa’s government has said it is seeking additional markets and trading partners, including China. Its immediate diplomatic challenge is whether discussions with Washington can address the stated concerns before the new eligibility decision takes effect. No agreement reversing the announced removal had been reported at the time of writing.
The latest move underlines the uncertainty facing African exporters as Washington reassesses trade preferences and the conditions attached to them. For South African and Rwandan businesses, the immediate issue is practical: how the proposed loss of duty-free access will affect prices, employment, investment and existing supply arrangements.
Featured photograph: US Trade Representative Jamieson Greer, official 2025 portrait, Office of the United States Trade Representative, public-domain US federal government work. Source: Wikimedia Commons.
