US threatens South Africa, Rwanda with duty-free trade suspension

The United States has announced plans to withdraw duty-free trade benefits for South Africa and Rwanda under the African Growth and Opportunity Act (AGOA), starting from January 1, 2027. US Trade Representative Jamieson Greer declared on Monday that both nations had not met the eligibility criteria set by AGOA. South Africa, the leading beneficiary of the program, shipped around $1.7 billion worth of goods to the US in 2025.

"The governments of Rwanda and South Africa have been found to be engaging in practices that are inconsistent with AGOA's eligibility criteria," Greer stated. No immediate response has been received from either country. AGOA beneficiaries must adhere to eligibility requirements that encompass progress towards market-based economies, good governance, and the removal of trade and investment barriers, with Washington conducting an annual review of eligibility.

South Africa's Department of Trade, Industry, and Competition stated last week that it is ready for a negative outcome from the AGOA eligibility review and remains open to dialogue with the US. Exports under AGOA account for only about 10% of South Africa's total exports to the US and 1% of its global exports. South African President Cyril Ramaphosa had also expressed his country's readiness for being excluded from the program and emphasized its efforts to seek new markets and sign new trade deals.

South Africa's principal exports to the US include precious stones and metals, motor vehicles, iron and steel, and AGOA-related exports mainly consist of motor vehicles and parts, farm products, and wine. Rwanda's main exports to the United States include coffee, tea, and minerals.