US to end duty-free trade benefits for South Africa and Rwanda in January

South Africa and Rwanda will lose duty-free access to the United States under the African Growth and Opportunity Act from January 1, 2027, Washington has announced. US Trade Representative Jamieson Greer said on Monday that neither country had satisfied the programme’s eligibility requirements.

Greer attributed the decision to President Donald Trump’s assessment of the two governments. “President Trump found that the governments of Rwanda and South Africa are engaging in practices that are inconsistent with AGOA’s eligibility criteria,” he said in a statement. Neither country immediately responded to the announcement.

The programme links trade benefits to conditions that include progress towards market-based economies, good governance and the removal of obstacles to US trade and investment. Washington assesses participating countries’ eligibility each year. For Rwanda, which was also suspended in 2018, US officials cited deep concerns about trade barriers, the rule of law and human rights.

In South Africa’s case, Washington pointed to corruption, barriers affecting US trade and investment, and threats to American national security and foreign policy interests. South Africa has been AGOA’s biggest beneficiary, sending approximately $1.7bn in goods to the US through the programme in 2025.

The decision comes amid growing tensions between Washington and Pretoria. Trump’s administration has taken action against South Africa over his claims that white people face persecution there. The South African government rejects those claims, describing them as falsehoods promoted by fringe groups. Washington has also objected to South Africa’s foreign policy, particularly its decision to bring a genocide case against Israel at the International Court of Justice. Israel denies the allegations.

South Africa’s Department of Trade, Industry and Competition said last week that it had prepared for an unfavourable eligibility decision while remaining willing to hold talks with Washington. The department said shipments benefiting from AGOA represented about 10 percent of South Africa’s exports to the United States and 1 percent of its exports worldwide.

President Cyril Ramaphosa had similarly warned in recent weeks that South Africa needed to prepare for exclusion from the programme. He said the country was already pursuing alternative markets and concluding trade agreements with other partners, including China.

Precious stones and metals, vehicles, iron and steel are among South Africa’s principal exports to the United States. Its shipments covered by AGOA consist mainly of vehicles and vehicle parts, agricultural products and wine. Rwanda’s main goods sold to the US include coffee, tea and minerals.