US to Remove South Africa and Rwanda From AGOA Trade Program
The Trump administration plans to end both countries' duty-free access to the American market starting January 1, 2027.
KEY POINTS
- The United States will exclude South Africa and Rwanda from AGOA at the end of the year.
- The decision takes effect on January 1, 2027.
- US Trade Representative Jamieson Greer cited trade barriers and national security concerns.
- South African organisations blame President Cyril Ramaphosa and Minister Ronald Lamola.
- AGOA has allowed duty-free exports from dozens of African countries since 2000.
The United States will exclude South Africa and Rwanda from the African Growth and Opportunity Act at the end of the year. US Trade Representative Jamieson Greer announced the decision following an annual review of sub-Saharan African countries' eligibility for the program.
Greer said both countries engage in practices inconsistent with AGOA requirements, including barriers to American trade and investment and actions considered threats to US national security and foreign policy interests. South African officials had hoped for a positive decision as recently as Thursday, October 29.
“It was a direct consequence of the government's failure to repair its deteriorating relationship with Washington.”
South African trade union Solidarity and the organisation Lex Libertas blamed President Cyril Ramaphosa and International Relations Minister Ronald Lamola for the move. They said the government repeatedly ignored warnings about the consequences of its foreign policy decisions and public statements.
AGOA has been in force since 2000 and allows dozens of African countries to export many products to the United States without customs duties. Congress renewed the program last year, extending it through the end of 2028.
South Africa is one of the program's main beneficiaries. The US government has also accused Pretoria of alleged persecution of Afrikaners, descendants of white European colonists.
The termination is set to take effect on January 1, 2027. Solidarity said it is working with members of Congress on plans to extend AGOA by another ten years beyond 2028.
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