South Africa will lose duty-free access under AGOA, impacting $1.7 billion worth of exports including cars and agricultural products.
Published November 2, 2026
The United States announced that it will suspend duty-free trade benefits for South Africa and Rwanda under the African Growth and Opportunity Act (AGOA) starting January 1, 2027.
U.S. Trade Representative Jamieson Greer said Monday that neither country meets the eligibility criteria for AGOA. South Africa is the biggest beneficiary of the program, exporting approximately $1.7 billion worth of goods to the United States under AGOA in 2025.
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“President Trump has discovered that the governments of Rwanda and South Africa are engaging in practices inconsistent with AGOA’s eligibility standards,” Greer said in a statement.
There was no immediate response from either country.
AGOA beneficiaries are expected to meet eligibility requirements, which include progress toward a market economy, good governance, and removal of barriers to U.S. trade and investment, which Washington reviews annually.
Rwanda was also suspended in 2018, although the US government has highlighted trade barriers, rule of law, and human rights as issues of deep concern in Rwanda.
Regarding South Africa, the U.S. government said it is concerned about barriers to U.S. trade and investment, corruption, and threats to U.S. national security and foreign policy interests.
rising tension
President Donald Trump’s administration has cracked down on South Africa, citing what Trump claims is the persecution of white people. The South African government claims this is a lie spread by non-armed groups.
The United States has also taken issue with South Africa’s foreign policy, particularly the genocide case it has filed against Israel at the International Court of Justice. Israel denies allegations of genocide.
Last week, South Africa’s Department of Trade, Industry and Competition said it was prepared for the possibility of a negative outcome in the AGOA eligibility review and remained open to dialogue with the United States. He pointed out that exports under AGOA account for about 10% of the country’s total exports to the United States and only 1% of its total global exports.
South African President Cyril Ramaphosa has also said in recent weeks that his country must prepare for being removed from the program and was already exploring new markets and signing new trade deals with other partners such as China.
South Africa’s main exports to the United States include precious stones and metals, automobiles, and steel. Exports under AGOA mainly include automobiles and their parts, agricultural products and wine.
Rwanda’s main exports to the United States include coffee, tea, and minerals.
