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After months of speculation, US finally shuts out South Africa, Rwanda from trade benefits across its $33 trillion market as Trump finalises AGOA decision
- Africa

After months of speculation, US finally shuts out South Africa, Rwanda from trade benefits across its $33 trillion market as Trump finalises AGOA decision

US President Donald Trump has formally notified Congress and the governments of both countries of his intention to remove them from the trade preference programme, according to a November 2 statement by the Office of the United States Trade Representative (USTR). US Trade Representative Jamieson Greer said the decision followed an annual interagency


US President Donald Trump has formally notified Congress and the governments of both countries of his intention to remove them from the trade preference programme, according to a November 2 statement by the Office of the United States Trade Representative (USTR).


US Trade Representative Jamieson Greer said the decision followed an annual interagency review of sub-Saharan African countries’ eligibility and found that both governments were engaging in practices inconsistent with AGOA’s requirements.


“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.


“These concerning and pervasive practices include, but are not limited to, barriers that undermine American trade and investment and practices that pose a threat to U.S. national security and foreign policy interests in the region.” the statement added.























The USTR identified a wider range of concerns about Rwanda, including trade and investment barriers, the rule of law, political pluralism, internationally recognised workers’ rights, human rights, and threats to US national security and foreign policy interests.








For South Africa, the administration cited barriers to American trade and investment, corruption, and concerns over US national security and foreign policy interests.


Greer said the administration wanted African partners to take the necessary steps to meet AGOA’s eligibility requirements, leaving room for engagement before the planned termination date.


South Africa has been particularly exposed to the decision as the programme’s largest beneficiary. The country exported approximately $1.7 billion worth of goods to the US under AGOA in 2025. Its eligible exports include vehicles, agricultural products, clothing and manufactured goods.


Pretoria has been lobbying Washington to retain its access. Trade, Industry and Competition Minister Parks Tau previously said the government had submitted proposals to address American concerns and remained open to negotiations.


Rwanda has faced AGOA restrictions before. In 2018, Washington suspended its duty-free treatment for apparel exports after Kigali restricted imports of used clothing from the US.


Established in 2000, AGOA provides eligible sub-Saharan African countries with duty-free access to the US market for more than 1,800 products. The programme was extended through December 31, 2026, after Trump signed a one-year reauthorisation in February.


The planned termination would not end ordinary trade between the US and the two African countries, but could make affected exports more expensive by removing preferential tariff treatment.

Source: africa.businessinsider.com

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