US President Donald Trump has notified the US Congress and the governments of South Africa and Rwanda of his intention to terminate their eligibility for the African Growth and Opportunity Act (Agoa) trade preference programme, effective January 1. The decision was made after an annual review of Sub-Saharan African countries' eligibility for the trade pact, led by the US trade representative's office.
The US trade representative, Jamieson Greer, stated that President Trump found the governments of Rwanda and South Africa engaging in practices inconsistent with Agoa's eligibility criteria. These practices include barriers that undermine American trade and investment, as well as threats to US national security and foreign policy interests in the region.
The Agoa trade pact provides qualifying African countries with duty-free access to US markets. South Africa's minister of trade, industry and competition, Parks Tau, had expressed confidence that the US would favourably respond to the country's offers during ongoing negotiations. Tau met with Greer in Washington DC last month and noted that over $5bn in investment commitments had been made by US companies in South Africa in the last year.
The labour federation Cosatu expressed deep concern about the impact of South Africa's expulsion from Agoa on thousands of agricultural and manufacturing jobs. The federation stated that the country's already high unemployment rate and weak economic growth made it essential for the government to negotiate a favourable set of solutions to avert this potential blow to the economy and jobs.
The Citrus Growers' Association of Southern Africa (CGA) also expressed disappointment, stating that the exclusion would be a loss not only for South Africa but also for US consumers. The CGA noted that citrus trade between South Africa and the US had always been mutually beneficial, with South African citrus complementing US production during the US off-season.
South Africa had pushed for a 15-year extension of Agoa, but Trump signed a law extending the pact to 2028, which fell short of the country's request. The country's eligibility was also uncertain due to its frosty diplomatic relations with the US, partly over legislation Washington says discriminates against the white minority. Agoa was first enacted in 2000 as part of a push by the US to shift its engagement with Sub-Saharan Africa towards trade-led economic development and investment.
The office of the US trade representative accused South Africa of maintaining high tariffs on US poultry, wine and spirits, while providing preferred access to the EU. The US also imposed tariffs on South African passenger vehicles, relevant vehicle parts, steel and aluminium. As a result, vehicle export earnings to the US fell to R8bn in 2025 from about R17.7bn in 2024.
Key points
- US President Donald Trump notified Congress and governments of South Africa and Rwanda of intention to terminate eligibility for African Growth and Opportunity Act trade preference programme.
- South Africa's expulsion from Agoa may impact thousands of agricultural and manufacturing jobs.
- The US accused South Africa of unfair trade practices, including high tariffs on US poultry, wine and spirits.
