The US has announced its intention to suspend South Africa and Rwanda from duty-free access to the US market under the African Growth and Opportunity Act (Agoa). This decision was made by US trade representative Jamieson Greer, who stated that both countries are engaging in practices inconsistent with Agoa's eligibility criteria. Agoa provides eligible African countries with duty-free access to the US market for thousands of products.
South Africa has been one of the largest beneficiaries of Agoa, exporting approximately $1.7bn worth of goods to the US under the programme in 2025. The country's exports under Agoa account for only about 10% of its total exports to the US and 1% of its total global exports. This indicates that while Agoa is an important trade agreement for South Africa, it is not its primary export route.
The US trade representative highlighted several concerns regarding South Africa's eligibility for Agoa. These concerns include barriers to US trade and investment, corruption, and threats to US national security and foreign policy interests. Additionally, the Trump administration has expressed concerns about South Africa's foreign policy, particularly its genocide case against Israel at the International Court of Justice.
In Rwanda, the US is concerned about trade barriers, the rule of law, and human rights. Rwanda was previously suspended from Agoa in 2018. The US regularly reviews Agoa beneficiaries' adherence to eligibility requirements, which include maintaining market-based economies, good governance, and eliminating barriers to US investments and trade.
South Africa's government has stated that it is prepared for a negative outcome from the Agoa eligibility review and remains open to dialogue with the US. President Cyril Ramaphosa has also emphasized the need for South Africa to prepare for being cut out of the programme. In response, South Africa is seeking new markets and signing new trade deals with other partners, such as China.
The Trump administration has been critical of South Africa, with President Donald Trump previously expressing concerns about the country's treatment of white people. However, South Africa's government has denied these claims, calling them falsehoods spread by fringe groups. The US has taken a more critical stance on South Africa under the Trump administration.
South Africa and the US will likely engage in further discussions regarding Agoa and South Africa's eligibility. President Ramaphosa's efforts to diversify South Africa's trade partnerships and mitigate the impact of a potential Agoa suspension are ongoing. The suspension, if implemented, will affect South Africa's exports to the US, although the overall impact on the country's economy is expected to be limited.
Key points
- The US plans to suspend South Africa from duty-free trade access under Agoa due to concerns about trade barriers, corruption, and threats to US national security and foreign policy interests.
- South Africa's exports under Agoa account for only about 10% of its total exports to the US and 1% of its total global exports.
- South Africa is seeking new markets and signing new trade deals with other partners, such as China, to mitigate the impact of a potential Agoa suspension.
