South Africa faces losing preferential access to the US market after President Donald Trump notified Congress of his intention to terminate the country's participation in AGOA from January 1, 2027. This decision represents a major setback for Pretoria's efforts to preserve duty-free access to the American market amid deteriorating diplomatic relations between the two countries. The announcement was made on Monday, following an annual interagency review of sub-Saharan African countries' eligibility for the programme.
The US Trade Representative, Jamieson Greer, stated that the decision was based on the review, which found that the governments of Rwanda and South Africa are engaging in practices inconsistent with AGOA's eligibility criteria. These practices include barriers that undermine American trade and investment, as well as those considered threats to US national security and foreign policy interests in the region. Greer emphasized that the Trump Administration is working to ensure African partners take necessary steps to meet the eligibility criteria.
The notification signals Washington's intention to remove South Africa from the programme, although the administration has indicated that it wants African partners to address its concerns. This decision comes against the backdrop of increasingly strained relations between Pretoria and Washington since Trump returned to the White House in January 2025. The diplomatic fallout has included the suspension of US foreign aid to South Africa and the expulsion of former South African ambassador Ebrahim Rasool.
The two countries have clashed over various issues, including South Africa's land reform policies, affirmative action, and its foreign policy positions, particularly its legal action against Israel at the International Court of Justice over alleged genocide in Gaza. South Africa has defended its sovereign right to determine its domestic policies and pursue an independent foreign policy. The diplomatic dispute has also extended to the G20, with Washington refusing to accredit South Africa for official US-hosted G20 meetings.
AGOA allows qualifying African nations to export thousands of products to the US without paying import duties, including vehicles, textiles, and agricultural products. South Africa is the biggest beneficiary of the trade initiative, making its automotive, farming, and manufacturing industries particularly vulnerable to any decision to remove the country from the programme. Trade between South Africa and the US amounted to $28.8 billion in 2025, with over 600 US companies having a presence in South Africa, collectively employing over 130,000 people.
The proposed withdrawal from AGOA threatens to further undermine South Africa's preferential access to the American market, placing additional strain on diplomatic relations already characterised by growing tensions. Rwanda is also facing exclusion from AGOA, with Greer confirming that Trump had notified Congress and the Rwandan government of his intention to terminate Rwanda's participation in the programme from January 1, 2027.
The US administration has accused both countries of engaging in practices inconsistent with the programme's eligibility requirements. The announcement follows Washington's concerns over Rwanda's involvement in the conflict in the eastern Democratic Republic of Congo, alongside broader regional security and foreign policy issues. South Africa is seeking direct talks with Washington to protect its preferential access to the US market, amid tensions over trade, visas, aid, and the G20.
Key points
- South Africa faces losing preferential access to the US market under AGOA.
- The decision follows an annual interagency review of sub-Saharan African countries' eligibility for the programme.
- Trade between South Africa and the US amounted to $28.8 billion in 2025.
