US to drop South Africa, Rwanda from duty-free trade initiative

South Africa and Rwanda are set to be removed from a US trade initiative that has provided duty-free access to the US market for thousands of products from sub-Saharan African countries for 26 years.

On Monday, US Trade Representative Jamieson Greer said US President Donald Trump intends to "terminate" the two countries from the African Growth and Opportunity Act (AGOA) trade preference program starting in January 2027.

The program, which comes under regular review, was extended in February by Trump.

In a statement, Greer said that "the governments of Rwanda and South Africa are engaging in practices that are inconsistent with AGOA's eligibility criteria."

Greer said these practices include "barriers that undermine American trade and investment and practices that pose a threat to US national security and foreign policy interests in the region."

The statement did not provide any specific examples of the trade barriers or security and foreign policy issues in question.

AGOA was introduced in 2000 by former US President Bill Clinton, and it has become a centerpiece of US economic engagement with sub-Saharan Africa.

Duty free access to the US market is seen as a critical economic boost for the more than 30 AGOA countries. Over 1,800 specific products are covered under AGOA.

Requirements for membership include eliminating barriers to US trade and investment, while maintaining an open market economy along with democratic principles like the rule of law, human rights and labor protections.

South Africa has been AGOA's largest beneficiary, with $1.7 billion (€1.5 billion) worth of goods like car parts, citrus fruit and wine, exported to the US under the program in 2025.

South Africa's Trade Ministry said last week that it was prepared for the decision, adding that AGOA exports comprise only about 10% of its ​total exports to the US and 1% of its total global exports.

"AGOA remains important to South Africa, but it does not constitute the totality of the economic relationship between South Africa and the ‌United States," it said in a statement.

In recent weeks, President Cyril Ramaphosa has also said South Africa must prepare for being excluded from AGOA by seeking new markets and trade deals with partners like China.

On Monday, the South Africa government said the US remains an important trade partner and it would provide support for affected sectors.

South Africa's export-dependent citrus industry warned that its entire value chain "on both sides of the Atlantic, is now under threat," and warned that jobs and the economic security of entire communities is now at stake.

The US has been putting economic pressure on Rwanda over its alleged support of the M23 rebel group in the Democratic Republic of Congo.

Washington sanctioned Rwanda's Defense Ministry last week, which denies any ties to M23, along with several individuals, institutions and a gold refinery.

Major Rwandan exports to the US include coffee and minerals.