US to suspend South Africa and Rwanda from duty-free trade access
Summary
The United States plans to suspend South Africa and Rwanda from duty-free trade benefits under the African Growth and Opportunity Act (AGOA) starting January 1, 2027. US Trade Representative Jamieson Greer said the countries failed to meet the program’s eligibility criteria; neither government had responded immediately.Key Facts
- South Africa exported about $1.7 billion in goods to the United States under AGOA in 2025, making it the program’s largest beneficiary.
- AGOA eligibility criteria include progress toward market-based economies, good governance, and removing barriers to US trade and investment.
- The US cited trade barriers, rule of law, and human rights concerns in Rwanda; Rwanda was also suspended from AGOA in 2018.
- For South Africa, the US cited concerns about trade and investment barriers, corruption, and US national security and foreign policy interests.
- South Africa’s trade department said it had prepared for a negative review outcome and remained open to dialogue with the United States.
- South Africa said AGOA exports account for about 10% of its exports to the United States and 1% of its global exports.
- South Africa’s AGOA exports mainly include motor vehicles and parts, farm products, and wine; Rwanda’s main exports to the US include coffee, tea, and minerals.
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