US to remove South Africa and Rwanda from duty-free trade program in 2027

The United States has announced it will suspend South Africa and Rwanda from the African Growth and Opportunity Act (AGOA), a trade preference program that allows duty-free exports to the US market. This change will take effect on January 1, 2027, according to US Trade Representative Jamieson Greer, as reported by DW English and Al Jazeera English.

AGOA, introduced in 2000, has been a key element of US economic engagement with sub-Saharan Africa, providing duty-free access for thousands of products. South Africa has been the largest beneficiary, exporting approximately $1.7 billion worth of goods to the US under AGOA in 2025, including iron, steel, and wine.

The Trump administration cited that both countries failed to meet AGOA's eligibility criteria, which include progress toward market-based economies, good governance, and elimination of barriers to US trade and investment. Specific concerns mentioned include trade barriers, corruption, threats to US national security, and foreign policy interests in the region. Rwanda was also noted for issues related to human rights, political pluralism, the rule of law, and workers' rights.

The decision follows recent US sanctions against Rwanda's defense ministry for its alleged involvement in armed conflict in eastern Democratic Republic of Congo. South Africa's government has disputed US accusations, including claims related to its foreign policy and allegations made by President Trump about persecution of white people.

South Africa's Department of Trade, Industry and Competition has expressed readiness for a negative outcome from the AGOA review and remains open to dialogue with the US. The US has indicated it is working with African partners to meet eligibility requirements under the program.