Economy By

US Moves to Cut South Africa and Rwanda From Duty-Free Trade Program

The United States plans to remove South Africa and Rwanda from a trade program that lets African countries sell thousands of products to the U.S. without import duties. The change would take effect Jan. 1, 2027, according to the BBC, Al Jazeera and DW.

U.S. Trade Representative Jamieson Greer announced the decision on Monday. South Africa, the program's largest beneficiary, would lose the most in dollar terms, though its government says the program covers only a small share of its overall trade.

The key numbers behind the decision

What Washington says is behind the move

Greer said the annual eligibility review found that both governments engage in practices inconsistent with AGOA's requirements. Those rules include open markets, good governance and the removal of barriers to U.S. trade and investment. DW reported that Greer's statement cited barriers to American trade and investment and threats to U.S. national security and foreign policy interests, without giving specific examples.

For Rwanda, Washington also raised concerns about human rights, political pluralism, the rule of law and workers' rights, according to the BBC. Al Jazeera noted that Rwanda was previously suspended from the program in 2018. The announcement came about a week after the U.S. Treasury sanctioned Rwanda's defense ministry over its alleged role in the armed rebellion in eastern Democratic Republic of Congo. The Treasury said the ministry directed thousands of troops to fight alongside M23 rebels and supplied weapons, equipment, logistics and training. DW reported that the ministry denies any ties to M23.

For South Africa, the U.S. also cited corruption, according to the BBC and Al Jazeera. Relations between the two governments have been strained. Al Jazeera reported that Trump says South Africa persecutes white people, a claim South Africa's government calls a falsehood spread by fringe groups. The BBC noted that Trump raised the allegation with President Cyril Ramaphosa at the White House last year. Al Jazeera added that Washington has also objected to South Africa's genocide case against Israel at the International Court of Justice. Israel denies the allegations.

Why it matters for exporters and workers

Losing AGOA status would mean South African and Rwandan companies lose the duty-free access that applied to covered goods. According to Al Jazeera, South Africa's exports under the program are mainly motor vehicles and parts, farm products and wine. DW also listed citrus fruit. Rwanda's main exports to the U.S. include coffee, tea and minerals, according to Al Jazeera.

South Africa's export-dependent citrus industry warned that its whole value chain, on both sides of the Atlantic, is under threat. It said jobs and the economic security of entire communities are at stake, according to DW. South Africa's trade department has taken a more measured view. It said the program is important but does not make up the whole economic relationship with the U.S.

How the governments are responding

South Africa's government said on Monday that the U.S. remains an important trade partner and that it would support affected sectors, according to DW. Its trade department had said the week before that it was prepared for a negative outcome and remained open to talks with Washington. Ramaphosa has said in recent weeks that the country must prepare to be cut out of the program. He said it is already seeking new markets and signing trade deals with partners such as China, according to Al Jazeera and DW. Al Jazeera reported no immediate response from Rwanda.

U.S. Ambassador to South Africa Leo Brent Bozell III said on X that South Africa's policies led to the outcome. He called it “predictable and preventable” and said it followed South Africa's rejection of U.S. concerns. Greer said the administration is working to ensure African partners take the steps needed to meet the eligibility criteria.

What happens next

The removal is scheduled for Jan. 1, 2027. The BBC reported that the administration has notified both countries as well as Congress. DW noted that Trump extended the broader program in February, and that AGOA eligibility is reviewed regularly.

Around Prague, based on reporting by BBC News, Al Jazeera, DW

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