US President Donald Trump has notified Congress of his intention to remove South Africa and Rwanda from a preferential trade programme, effective 1 January 2027. The African Growth and Opportunity Act allows eligible African countries to export thousands of products to the US duty-free. This decision comes after an annual review found that both countries were engaging in practices inconsistent with the programme's eligibility requirements.
The US Trade Representative, Jamieson Greer, stated that the Trump administration had additionally notified the two countries of the decision. The administration cited barriers to US trade and investment, as well as concerns over national security and foreign policy interests in the region. These concerns led to the conclusion that Rwanda and South Africa no longer met the eligibility criteria for the trade programme.
In Rwanda's case, the US raised concerns about human rights, political pluralism, the rule of law, and workers' rights. This move comes barely a week after Rwanda's defence ministry was hit with sanctions by the US Treasury for its alleged role in the armed rebellion in eastern DR Congo. The US Treasury said Rwanda's defence ministry directed thousands of troops to fight alongside M23 rebels in eastern DR Congo, providing weapons, equipment, logistics, and training.
For South Africa, the US pointed to corruption as a major concern. The announcement comes amid strained relations between Washington and both countries, with the proposed termination threatening their access to preferential trade arrangements with the US. Last year, Trump accused South Africa of white genocide in a meeting with President Cyril Ramaphosa at the White House and launched a US refugee pathway for Afrikaners.
The US Ambassador to South Africa, Leo Brent Bozell III, expressed regret over the decision, stating that it was a predictable and preventable outcome resulting from the rejection by South Africa's government of real concerns raised by the US. The Trump administration is working to ensure that African partners take the necessary steps to meet the eligibility criteria for the trade programme.
The African Growth and Opportunity Act has been instrumental in promoting economic development and trade between the US and eligible African countries. The removal of Rwanda and South Africa from the programme may have significant economic implications for both countries. The US is a major trading partner for both countries, and the loss of preferential trade arrangements may affect their economies.
The decision to remove Rwanda and South Africa from the trade programme reflects the Trump administration's commitment to enforcing the eligibility criteria for the African Growth and Opportunity Act. The administration's concerns over human rights, corruption, and trade practices in both countries led to the decision.
Key points
- The US cited concerns over human rights, corruption, and trade practices in Rwanda and South Africa.
- The removal of Rwanda and South Africa from the programme may have significant economic implications for both countries.
- The decision reflects the Trump administration's commitment to enforcing the eligibility criteria for the African Growth and Opportunity Act.
