US to drop South Africa, Rwanda from duty-free trade initiative

AGOA, or the African Growth and Opportunity Act, is a US trade preference program created in 2000. It gives eligible sub-Saharan African countries duty-free access to the US market for thousands of products. The goal is to support trade and economic engagement while encouraging open markets and democratic principles.

Duty-free access means the US does not charge import tariffs on covered goods that meet the program’s rules. Products such as car parts, citrus fruit, wine, coffee and minerals can therefore reach US buyers without that extra border cost. This can make exports more competitive and improve returns for producers.

The benefit is conditional, not automatic. Countries must meet requirements involving US trade and investment, an open market economy, the rule of law, human rights and labor protections. The United States is now planning to remove South Africa and Rwanda from AGOA, showing that eligibility can be withdrawn.

The United States intends to remove both South Africa and Rwanda from the African Growth and Opportunity Act. This would end their eligibility for the program’s duty-free access to the US market. The move matters because AGOA has supported exports from sub-Saharan Africa for 26 years and is a major part of US economic engagement with the region.

US Trade Representative Jamieson Greer announced the plan on Monday. He said President Donald Trump intends to “terminate” the two countries from AGOA. The program was extended in February, but it remains subject to regular review. Removal would therefore change the trade terms available to exporters from both countries.

The planned effective date is January 2027. Greer said the governments had engaged in practices inconsistent with AGOA eligibility rules, including barriers to US trade and investment and practices seen as threatening US national security and foreign policy interests. The statement gave no specific examples.

AGOA is a large but selective trade program. It provides duty-free access to the US market for more than 30 sub-Saharan African countries. The program covers over 1,800 specific products, making it an important channel for goods from the region to reach American customers without import duties.

South Africa is AGOA’s largest beneficiary. In 2025, it exported $1.7 billion (€1.5 billion) worth of goods to the United States under the program. The article identifies car parts, citrus fruit and wine among the products involved. This figure shows the program’s substantial value for at least one participating country.

The scale does not mean every country benefits equally. South Africa’s Trade Ministry said AGOA exports represented about 10% of its exports to the US and 1% of its total global exports. Even so, the program remains important, especially for industries dependent on access to the American market.

Losing AGOA would remove the duty-free treatment that South African and Rwandan goods currently receive under the program. Import duties could raise the cost of entering the US market or reduce exporters’ returns. The effect would vary by product, company and future trade arrangements, but industries built around US access would face a less favorable position.

South Africa’s covered exports include car parts, citrus fruit and wine. Its citrus industry warned that the entire value chain on both sides of the Atlantic was under threat. It also said jobs and the economic security of whole communities were at stake. These warnings show how trade preferences can affect growers, processors, transporters and sellers.

Rwanda’s major exports to the United States include coffee and minerals. The article does not quantify their AGOA sales or predict specific losses. However, those products would no longer receive AGOA’s duty-free treatment if Rwanda is removed, leaving exporters to adjust to the change or seek other markets.

AGOA is conditional on more than exporting goods. Eligible countries must remove barriers to US trade and investment and maintain an open market economy. They must also uphold democratic principles, including the rule of law, human rights and labor protections. These requirements allow the United States to link trade preferences with broader economic and political standards.

US Trade Representative Jamieson Greer said South Africa and Rwanda had engaged in practices inconsistent with AGOA’s eligibility criteria. He described the concerns as barriers undermining American trade and investment, plus practices posing threats to US national security and foreign policy interests in the region.

The statement did not identify particular trade barriers, security issues or foreign-policy actions. That leaves the article unable to specify exactly which conduct caused the decision. The immediate consequence is clear: President Donald Trump intends to terminate both countries from AGOA starting in January 2027, subject to the announced plan.

The M23 issue is separate from the broader AGOA decision, although it adds to US pressure on Rwanda. Washington alleges that Rwanda supports M23, a rebel group operating in the Democratic Republic of Congo. Rwanda denies having ties to the group. The article presents the allegation and denial without resolving the dispute.

The United States has responded with economic sanctions. Last week, Washington sanctioned Rwanda’s Defense Ministry, along with several individuals, institutions and a gold refinery. Sanctions are a form of economic pressure that can restrict or penalize targeted actors, although the article does not detail the specific measures used.

This dispute helps explain why Rwanda’s relationship with the United States is under strain. Rwanda is also being removed from AGOA under President Donald Trump’s announced plan, starting in January 2027. The US said the countries’ practices threatened national security and foreign policy interests, but it did not explicitly connect that statement to the M23 allegation.

A tariff is a tax placed on goods entering a country. If a US importer pays a tariff, the added cost may be absorbed by the importer, passed to customers or reduce what an exporter earns. Tariffs therefore influence the price and competitiveness of traded products. The article describes AGOA as providing duty-free access, meaning covered imports avoid those charges.

Trade preferences can affect business decisions. A company may find it more attractive to produce an eligible product in an AGOA country if that product can enter the United States without a tariff. Buyers may also prefer suppliers whose goods arrive at a lower total cost. The exact effect depends on production costs, product rules and market demand.

AGOA thus links market access with location and trade choices. South Africa’s car parts, citrus and wine, and Rwanda’s coffee and minerals have benefited from access under the program. If the two countries lose AGOA status in January 2027, exporters may face higher costs or seek different markets.