US President Donald Trump has notified Congress of his intention to terminate South Africa's participation in the African Growth and Opportunity Act (AGOA) trade programme from January 1, 2027. This decision represents a significant setback for Pretoria's efforts to maintain duty-free access to the American market. The move comes amid strained diplomatic relations between the two countries.
The US Trade Representative, Jamieson Greer, stated that the decision was made following an annual interagency review of sub-Saharan African countries' eligibility for the programme. The review 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 threats to US national security and foreign policy interests in the region.
The Trump Administration has expressed concerns over South Africa's domestic and foreign policies, including its land reform policies, affirmative action, and foreign policy positions. The two countries have clashed over South Africa's 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.
AGOA allows qualifying African nations to export thousands of products to the US without paying import duties. South Africa is the largest 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.
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. Over 600 US companies have a presence in South Africa, collectively employing over 130,000 people. The decision is likely to have significant implications for South Africa's economy and trade relationships.
Rwanda is not the only other African country facing exclusion from AGOA. According to Greer, Trump has also 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. The Trump Administration is working to ensure that African partners take the necessary steps to meet the eligibility criteria for AGOA.
Key points
- US President Donald Trump has notified Congress of plans to end South Africa's AGOA participation from January 1, 2027.
- The decision was made due to South Africa's practices being inconsistent with AGOA's eligibility criteria.
- The proposed withdrawal from AGOA threatens to undermine South Africa's preferential access to the American market.
