Trump Administration to Remove South Africa and Rwanda from US Trade Agreement

US President Donald Trump has decided to remove South Africa and Rwanda from the eligible trade programme under the African Growth and Opportunity Act (AGOA). The US has informed Congress of this decision, and the change will come into effect from 1 January, 2027. According to a BBC News report, African countries eligible under this programme can export thousands of products to the US duty-free.

US Trade Representative Jamison Greer stated in a statement that during the annual review, it was found that both countries are involved in activities that are inconsistent with the eligibility requirements of this programme. Greer further added that the Trump administration has informed both countries of this decision. The US has cited concerns regarding barriers to US trade and investment, as well as national security and foreign policy interests in the region, behind this decision.

In the case of South Africa, the US has raised the issue of corruption. In a letter addressed to South African President Cyril Ramaphosa, Trump stated that Pretoria's actions on international security and its relations with governments that Washington deems concerning could harm US national security and foreign policy interests. Additionally, the US has alleged that South Africa maintains significant barriers to US trade and investment, including issues such as restrictions on agricultural market access, regulatory requirements, investment protection, and intellectual property.

According to the BBC report, economic pressure is being exerted on Rwanda by the US for its alleged support to the M23 rebel group in the Democratic Republic of Congo. Last week, Washington imposed sanctions on certain individuals, entities, and a gold refinery associated with Rwanda's Ministry of Defence, although Rwanda has denied any links with M23. Rwanda's main exports to the US include coffee and minerals.

South African Trade Minister Parks Tau described the decision as "unfortunate." He stated that Washington is raising new issues that were not encountered in the trade negotiations between the two countries that commenced in 2025. Tau further added that they will continue to accelerate the diversification of South Africa's export markets to protect jobs. According to a DW report, the South African Trade Ministry stated that they are prepared for this decision and that AGOA exports constitute only 10% of South Africa's total exports and 1% of global exports.

Government statistics show that in 2025, approximately 89% of South Africa's exports to the US were under normal World Trade Organization rules, while approximately 10% were under AGOA, compared to 28% in 2024. According to Tau, the value of South Africa's exports under this programme was $4 billion in 2024, which decreased to approximately $1.7 billion in 2025. Bilateral trade between the two countries reached $28.8 billion in 2025, and more than 600 US companies are operating in South Africa, providing approximately 1,34,600 jobs.

South Africa provides critical minerals to the US, including 12 of the 50 minerals considered critical by the US. Additionally, 70% of the supply of US isotopes used in cancer treatment is also provided by South Africa. G.A. van der Linde, a senior economist at Oxford Economics, warned that Washington's move would put more pressure on South Africa's manufacturing sector, as it may be difficult to divert affected exports to other markets. He noted that South Africa had previously succeeded in diverting exports to markets such as Europe and China.

The citrus industry, which is dependent on South African exports, has warned that this decision puts the entire value chain on both sides at risk, and the whole of economic security and community jobs are at stake. US Ambassador to South Africa, Leo Brent Bozzell III, also expressed regret that South Africa's policies are leading to its exit from AGOA.

AGOA was introduced in the year 2000 by former US President Bill Clinton. It is a trade programme that has provided tax-free access to the US market for sub-Saharan African countries for 26 years. More than 30 African countries are included under this programme, and more than 1,800 specific products are covered under it. To be a member of this programme, it is necessary to remove barriers to US trade and investment and to maintain democratic principles such as the rule of law, human rights, and labour protections.