US President Donald Trump has initiated steps to withdraw South Africa and Rwanda from the African Growth and Opportunity Act (Agoa), effective January 1, 2027, potentially ending their access to duty-free exports to the American market.
The programme provides eligible African nations with preferential access to the United States for thousands of products without import tariffs.
US Trade Representative Jamieson Greer said an annual assessment had identified activities by both countries that allegedly violated the scheme’s qualification standards. He added that Washington had formally informed the two governments about the proposed termination.
The decision was attributed to concerns surrounding trade restrictions, investment conditions, regional security and American foreign policy interests.
Regarding South Africa, the Trump administration raised allegations of corruption and criticised Pretoria’s diplomatic engagements with governments considered problematic by Washington.
In a communication to President Cyril Ramaphosa, Trump argued that South Africa’s international relations and security policies could conflict with American strategic interests.
He also highlighted restrictions affecting US agricultural exports, investment guarantees, regulatory procedures and intellectual property protections.
Greer maintained that the administration expected its African counterparts to address the issues identified to retain eligibility.
South African Trade Minister Parks Tau expressed disappointment over the development, arguing that Washington had introduced fresh demands that were not part of bilateral commercial discussions initiated in 2025.
Tau said Pretoria would intensify efforts to establish alternative export destinations to safeguard employment and businesses.
Government statistics indicate that approximately 89 per cent of South African goods entering America in 2025 qualified under standard World Trade Organization arrangements, while Agoa accounted for roughly 10 per cent, compared with 28 per cent the previous year.
Exports benefiting from the arrangement declined from $4 billion in 2024 to approximately $1.7 billion in 2025.
Despite the proposed withdrawal, commercial exchanges between the two nations amounted to $28.8 billion last year.
More than 600 American businesses also maintain operations in South Africa, employing approximately 134,600 people.
Pretoria further emphasised its importance to American supply chains, particularly through the provision of 12 minerals classified as critical by Washington and nearly 70 per cent of the isotopes utilised in the United States, including those required for cancer treatment.
South African industries also incorporate American materials into manufactured goods, such as automobiles and vessels, subsequently shipped back to the US.
Oxford Economics senior economist Jee-A van der Linde warned that losing preferential access could create additional difficulties for South African manufacturers, particularly those struggling to identify alternative buyers.
He noted that international trade disruptions and competition from inexpensive Chinese products were already placing pressure on domestic industries, especially automobile production.
However, the economist acknowledged that South African exporters had previously redirected some affected shipments towards European and Chinese markets.
Meanwhile, US Ambassador to South Africa Leo Brent Bozell III described the development as avoidable, arguing that Pretoria had failed to address concerns communicated by Washington.
Relations between the two governments have deteriorated over several disagreements, including Trump’s previous allegations of discrimination against South Africa’s white minority and his administration’s decision to introduce an asylum initiative for white Afrikaners.
The American president also repeated claims of genocide against the country’s white population, allegations that have been widely discredited.
Rwanda faces separate accusations involving human rights protections, political participation, labour standards and adherence to the rule of law.
The announcement follows recent American sanctions against Rwanda’s Defence Ministry over its alleged involvement in the conflict in eastern Democratic Republic of Congo.
According to the US Treasury Department, Rwandan forces have supported M23 fighters through military personnel, weapons, logistical assistance, equipment and training.
Kigali has consistently rejected allegations that it supports the rebel organisation.
US import records show that Rwanda’s exports to America increased from $13.1 million in 2024 to $43.3 million in 2025.
Oxford Economics economist Alexander Venter indicated that the US accounted for approximately two per cent of Rwanda’s merchandise exports during the period, with only four per cent of shipments to the country benefiting from Agoa concessions.
He explained that neighbouring African states and Asian economies remained the principal destinations for Rwandan exports.
By: Magdalene Agyeiwaa Sarpong