Trump moves to remove South Africa and Rwanda from Agoa trade programme

US President Donald Trump has notified Congress of his intention to remove South Africa and Rwanda from the African Growth and Opportunity Act, a preferential trade programme that allows eligible African countries to export thousands of products to the United States duty-free. The proposed change would take effect on 1 January 2027, according to the notice. The move affects two countries with already strained relations with Washington and could alter their access to a key trade arrangement.

US Trade Representative Jamieson Greer said an annual review had found both countries were engaging in practices inconsistent with Agoa's eligibility requirements. He said the administration had also notified both governments of the decision. The White House cited barriers to US trade and investment, along with national security and foreign policy concerns in the region.

In Rwanda's case, Washington also raised concerns about human rights, political pluralism, the rule of law and workers' rights. The announcement comes less than a week after the US Treasury imposed sanctions on Rwanda's defence ministry over its alleged role in the armed rebellion in eastern Democratic Republic of Congo. Treasury said the ministry directed thousands of troops to fight alongside M23 rebels, providing weapons, equipment, logistics and training.

For South Africa, the administration also pointed to corruption. The decision is likely to be closely watched by businesses and policymakers because Agoa has been a major channel for duty-free access to the US market for eligible African exporters. The move also carries wider geopolitical significance because it links trade policy with security and governance disputes.

Agoa has long been used by Washington to encourage market access, investment and policy reforms across sub-Saharan Africa. Removing two countries from the programme would mark a significant shift in how the US applies those eligibility rules, particularly at a time of tension over regional security and governance standards. It also underlines the administration's willingness to use trade preferences as leverage in foreign policy.

Relations between Washington and Pretoria have been under strain for some time. Last year, Trump accused South Africa of white genocide during a meeting with President Cyril Ramaphosa at the White House and later launched a US refugee pathway for Afrikaners. In the latest statement, US Ambassador to South Africa Leo Brent Bozell III said it was regrettable that South African policies had led to termination from Agoa.

He said the outcome was predictable and preventable because the government had rejected what he described as real concerns raised by the US. What remains unclear is how the two governments will respond before the planned start date in 2027, and whether either country will seek to reverse the decision through diplomatic engagement. It is also not yet clear what impact the move will have on specific exporters, investors and supply chains that rely on Agoa preferences.

#Agoa #SouthAfrica #Rwanda #DonaldTrump #tradepolicy