US to Suspend South Africa and Rwanda from Duty-Free Trade Programme
Written by AI from aljazeera.com's report. Not checked by a person.
The United States has announced it will suspend South Africa and Rwanda from the African Growth and Opportunity Act (AGOA) effective January 1, 2027, putting around $1.7 billion in South African exports at risk.
US Trade Representative Jamieson Greer announced Monday that the United States will suspend South Africa and Rwanda from the African Growth and Opportunity Act (AGOA), the programme that grants eligible African countries duty-free access to the US market. The suspension takes effect on January 1, 2027.
Greer stated that President Trump found both governments were "engaging in practices that are inconsistent with AGOA's eligibility criteria." South Africa has been the largest beneficiary of the programme, exporting about $1.7 billion worth of goods to the US under AGOA in 2025, primarily motor vehicles and parts, as well as farm products and wine.
Washington cited trade barriers, corruption and threats to US national security and foreign policy interests as grounds for suspending South Africa. Diplomatic tensions have also been stoked by South Africa's decision to bring a genocide case against Israel at the International Court of Justice, which Israel denies. Rwanda was flagged separately over concerns about trade barriers, rule of law and human rights — it was also suspended from AGOA in 2018.
Neither country issued an immediate response. South Africa's Department of Trade, Industry and Competition had said last week it was prepared for a negative outcome and remained open to dialogue with Washington. President Cyril Ramaphosa had separately said South Africa must prepare to be cut from the programme and was already seeking new markets and trade deals with partners such as China.
