Trump to remove Rwanda and South Africa from US trade deal
The move comes barely a week after Rwanda's defence ministry was hit with sanctions by the US Treasury.
The United States plans to withdraw South Africa and Rwanda from its longstanding duty-free trade program, known as the African Growth and Opportunity Act (AGOA). This initiative, in place for 26 years, has granted thousands of products from sub-Saharan African countries duty-free access to the US market. US Trade Representative Jamie Greer announced Monday that President Donald Trump intends to terminate South Africa and Rwanda from the program starting in January 2027.
The program, which reviews its terms regularly, was extended by Trump in February this year. Greer stated that the governments of Rwanda and South Africa are not meeting AGOA's eligibility criteria. These criteria include addressing barriers that undermine American trade and investment, as well as practices that could threaten US national security and foreign policy interests.
The exact nature of these issues was not specified in Greer's statement. AGOA, introduced in 2000 under former President Bill Clinton, has been a crucial economic tool for the United States' engagement with sub-Saharan Africa. Over 1,800 products are included in the program, with South Africa being its largest beneficiary, exporting $1.7 billion worth of goods in 2025, including car parts, citrus fruits, and wine.
South Africa, which generates about 10% of its exports to the US and 1% of its global exports under AGOA, has stated it is prepared for the decision. However, it emphasized that AGOA is just a part of its economic relationship with the US. President Cyril Ramaphosa has also encouraged South Africa to seek new markets and trade deals, including with China.
South Africa's government reiterated that the US remains an important trade partner, promising support for affected sectors. The citrus industry in South Africa, which relies heavily on exports, warned of the potential impact on its value chain and the jobs and economic security of entire communities. Meanwhile, the US has been applying economic pressure on Rwanda due to its alleged support for the M23 rebel group in the Democratic Republic of Congo.
Last week, Washington sanctioned Rwanda's Defense Ministry and several individuals, institutions, and a gold refinery, all denying any ties to the M23. Rwanda's major exports to the US are coffee and minerals.
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