Washington’s decision to remove both countries from AGOA exposes the economic and diplomatic consequences of preferential trade access, raising questions about export competitiveness, jobs and Africa’s relationship with the United States.
The United States has announced plans to suspend South Africa and Rwanda from its flagship African trade preference programme, withdrawing duty-free access for eligible exports from both countries from January 1, 2027.
The decision, announced on the 2nd of November by US Trade Representative Jamieson Greer, marks a significant development in Washington’s trade relations with the two African nations. It also raises concerns about the implications for exporters, businesses and the broader economic relationship between the United States and Africa.
The African Growth and Opportunity Act (AGOA), established in 2000, provides eligible sub-Saharan African countries with preferential access to the US market for thousands of products. Its objectives include encouraging trade, investment, economic growth and stronger commercial relationships.
However, participation is conditional. Beneficiary countries must meet requirements relating to market-based economies, good governance, the rule of law, human rights and the removal of barriers to US trade and investment.
US Trade Representative Ambassador Jamieson Greer shares that the policies of South Africa and Rwanda were inconsistent with the eligibility requirements, citing concerns about trade barriers, corruption, human rights and threats to US national security and foreign policy interests.
South Africa has historically been AGOA’s largest beneficiary, exporting approximately $1.7 billion worth of goods to the United States through the programme in 2025. Its main qualifying exports include motor vehicles and parts, citrus products and wine.
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