Reported by Al Jazeera
South Africa loses duty-free access under AGOA, impacting $1.7bn worth of exports, including cars and farm products.
The United States has said it will suspend South Africa and Rwanda from duty-free trade benefits under the African Growth and Opportunity Act (AGOA), effective January 1, 2027.
US Trade Representative Jamieson Greer said Monday that both countries had failed to meet AGOA’s eligibility criteria. South Africa has been the largest beneficiary of the programme, exporting about $1.7bn worth of goods to the US under AGOA in 2025.
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“President Trump found that the governments of Rwanda and South Africa are engaging in practices that are inconsistent with AGOA’s eligibility criteria,” Greer said in a statement.
AGOA beneficiaries are expected to meet eligibility requirements covering progress towards market-based economies, good governance and the elimination of barriers to US trade and investment, with Washington reviewing their eligibility annually.
Washington highlighted trade barriers, rule of law and human rights as issues it is deeply concerned about in Rwanda, which was also suspended in 2018.
With regard to South Africa, Washington said it was concerned by barriers to US trade and investment, corruption and threats to US national security and foreign policy interests.
President Donald Trump’s administration has cracked down on South Africa for what Trump says is its persecution of white people. South Africa’s government says this is a falsehood spread by fringe groups.
The US has also taken issue with South Africa’s foreign policy, in particular the genocide case it brought against Israel at the International Court of Justice. Israel denies genocide allegations.
South Africa’s Department of Trade, Industry and Competition said last week it was prepared for a negative outcome from the AGOA eligibility review and that it remained open to dialogue with the US. Exports under AGOA make up only about 10 percent of the country’s total exports to the US and 1 percent of its total global exports, it noted.
South African President Cyril Ramaphosa had also said in recent weeks that his country must prepare for being cut out of the programme, and that it was already seeking new markets and…