The United States will suspend South Africa and Rwanda from its flagship duty-free trade programme for sub-Saharan Africa from January 1, 2027, in a move expected to affect exports including South African car parts, wine and Rwandan coffee.
US Trade Representative Jamieson Greer notified Congress of the decision on Monday, citing concerns over human rights, corruption and practices considered threats to American interests.
The two countries will lose access to the African Growth and Opportunity Act (AGOA), which has been a key part of Washington’s economic engagement with Africa since it was introduced in 2000.
The programme allows eligible African countries to export thousands of products to the US market without paying import duties.
In a statement, Greer said President Donald Trump had determined that the governments of South Africa and Rwanda were engaging in practices that violated AGOA’s eligibility requirements.
The Trump administration has taken several measures against South Africa, accusing its government of persecuting white South Africans, a claim rejected by Pretoria.
South Africa has been the biggest beneficiary of AGOA, exporting approximately US$1.7 billion (RM7.4 billion) worth of goods to the US under the programme in 2025.
Its main exports include automotive parts, citrus fruits and wine, while Rwanda mainly exports coffee and minerals.
South Africa’s Trade Ministry said late on Monday that it would support industries affected by the decision while continuing to pursue trade, investment and economic opportunities with Washington.
“AGOA remains important to South Africa, but it does not constitute the totality of the economic relationship between South Africa and the United States,” the ministry said.
Rwanda had not issued an immediate response.
Washington Cites Trade Barriers And Security Concerns
The US said the suspensions were linked to barriers that undermine American trade and investment, as well as practices posing threats to its national security and foreign policy interests in the region.
Washington also raised concerns over human rights and the rule of law in Rwanda.
Experts believe Rwanda’s suspension is likely connected to the conflict in eastern Democratic Republic of Congo, where the US has accused Kigali of supporting rebel groups.
Washington has already imposed sanctions on several Rwandan individuals and institutions, including the country’s military and a gold refinery.
Rwanda had also faced a partial suspension from AGOA since 2018, preventing it from exporting apparel under the programme because of import tariffs considered by the US to be trade barriers.
Meanwhile, the top Democratic lawmaker on the House Ways and Means Committee criticised Trump’s decision to remove South Africa from the programme.
Representative Richard Neal described the move as another trade decision driven by grievances rather than responsible policymaking.
He called on the administration to provide a more detailed explanation and clarify what steps South Africa could take to regain its eligibility.
South Africa Looks To Diversify Export Markets
Council on Foreign Relations expert Ebenezer Obadare said South Africa could continue exporting goods to the US, although under less favourable trade conditions.
He warned that the decision could encourage African countries to diversify their trading relationships and seek alternative markets.
Even if a future US administration adopts a different approach, Washington could find that South Africa and other African nations have already established new trade opportunities and partnerships, including with China.
Obadare said the 10% figure was significant but not large enough to prevent South Africa from exploring alternatives.
The US has also criticised South Africa’s foreign policy, particularly its genocide case against Israel at the International Court of Justice. Israel has denied committing genocide.
The US ambassador to South Africa described the termination of AGOA benefits as regrettable, arguing that Pretoria had failed to address concerns raised by Washington.
South Africa’s Trade Ministry reiterated that the US remained an important trade and investment partner but said the government would accelerate efforts to diversify its export markets.
It noted that exports under AGOA accounted for approximately 10% of South Africa’s total exports to the US and just 1% of its overall global exports.
President Cyril Ramaphosa had also warned in recent weeks that South Africa needed to prepare for the possibility of losing access to the programme.
He said the country was already pursuing alternative markets and strengthening trade agreements with other partners, including China.
