US ends duty-free trade access for South Africa and Rwanda

US Trade Representative Jamieson Greer announced the decision on Monday, citing failures by both nations to meet the Act’s eligibility standards. South Africa has been a significant beneficiary, exporting approximately $1.7 billion in goods to the US through AGOA in 2025.

According to a statement, President Donald Trump determined that the governments of Rwanda and South Africa are engaging in practices inconsistent with AGOA’s requirements. Neither country has issued an immediate response.

AGOA participation requires adherence to criteria related to economic reforms, governance, and trade facilitation, with annual reviews conducted by Washington. Concerns raised regarding Rwanda include trade barriers, rule of law, and human rights issues; the country was previously suspended in 2018.

For South Africa, the US expressed concerns about trade and investment barriers, corruption, and potential threats to US national security and foreign policy.

The Trump administration has previously criticized South Africa over allegations of the persecution of white people, a claim the South African government has refuted. Disagreements over South Africa’s foreign policy, specifically its legal action against Israel at the International Court of Justice, have also contributed to the tensions.

South Africa’s Department of Trade, Industry and Competition stated last week that it anticipated a negative outcome from the AGOA review and remains open to discussions with the US. The department noted that AGOA exports represent roughly 10% of South Africa’s total exports to the US and 1% of its global exports.

President Cyril Ramaphosa has recently indicated that South Africa is preparing for potential exclusion from the program and is actively pursuing alternative markets and trade agreements, including with China. South Africa’s primary exports to the US include precious stones, metals, vehicles, and steel. AGOA exports are largely comprised of motor vehicles and parts, agricultural products, and wine. Rwanda’s main exports to the US consist of coffee, tea, and minerals.