Washington cites rights, corruption and trade concerns, while Pretoria says it will keep seeking a resolution through dialogue
The Trump administration plans to remove South Africa and Rwanda from a United States trade preference program from January 2027, putting billions of dollars in exports at risk and adding pressure to already strained diplomatic relations.
Trump notifies Congress
President Donald Trump has notified Congress and the two governments of his intention to terminate their eligibility for the African Growth and Opportunity Act (AGOA) from Jan. 1, 2027.
U.S. Trade Representative Jamieson Greer announced the decision on Nov. 2, following an annual review of participating countries.
Washington cites eligibility failures
Washington says both governments have failed to meet the program’s eligibility requirements.
Its concerns over Rwanda include human rights, workers’ rights, political pluralism and the rule of law. For SA, the administration cited alleged barriers to U.S. trade and investment, corruption and concerns involving American security and foreign policy interests.
The U.S. announcement did not provide specific examples to support the allegations.
Pretoria seeks dialogue
South Africa’s Trade Minister Parks Tau said on Nov. 3 that Pretoria would continue seeking a resolution through dialogue while assessing the consequences for businesses and workers.
The government also plans to help affected industries and expand efforts to reach alternative export markets.
What is at stake for exporters
SA faces the greater immediate exposure. It exported about $1.7 billion worth of goods to the U.S. under AGOA in 2025, including vehicles, citrus and wine.
Industry representatives have warned that losing preferential access could increase costs for exporters and put jobs at risk. Rwanda’s exports to the U.S. include coffee and minerals, although its trade volumes are substantially smaller.
Established in 2000, AGOA gives qualifying sub-Saharan African countries duty-free access to the U.S. market for thousands of products. The proposed removal would end the two countries’ preferential treatment, not trade between them and the United States altogether.
