US to Drop South Africa, Rwanda From AGOA
The United States will remove South Africa and Rwanda from the African Growth and Opportunity Act (AGOA), a duty-free trade programme for sub-Saharan Africa, from 1 January 2027, US Trade Representative Jamieson Greer announced on Monday, citing practices “inconsistent” with its eligibility criteria.
AGOA was introduced by President Bill Clinton in 2000 to give some African nations duty-free access to the American market for some of their goods, and more than 30 countries are members. Greer said President Donald Trump had notified Congress and the two governments of his intent to terminate their eligibility, after an annual interagency review led by the trade representative’s office.
The programme has been renewed to the end of 2028 but is reviewed each year, and a removal requires 60 days’ notice to Congress and the country concerned, which the 1 January date satisfies. “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 US national security and foreign policy interests in the region,” Greer said. The statement gave no specific examples, and Greer said the administration is working to ensure partners take the steps needed to meet the criteria, so countries can be reinstated.
South Africa is AGOA’s largest beneficiary. The Trump administration has said its affirmative action laws promoting Black business ownership are a barrier to US investment, and has made claims of widespread violence against white farmers that AP describes as baseless. Last week the US excluded South Africa from a G20 foreign ministers’ meeting in Atlanta. There was no immediate reaction from either government, though South African officials said last week they expected to be removed, and Trade Minister Parks Tau said the economy would remain stable.
For Rwanda, the move adds to pressure over its alleged support for the M23 rebel group in the Democratic Republic of Congo, which Rwanda denies. The US sanctioned Rwanda’s defence ministry last week, and Foreign Minister Olivier Nduhungirehe said Rwanda “must not be held as a scapegoat” for events in Congo. The trade representative’s profile lists Rwanda’s apparel benefits as suspended since 2018.
