Washington announced on Monday that it will suspend South Africa and Rwanda from its flagship duty-free trade program, the African Growth and Opportunity Act (AGOA), effective January 1, 2027. This suspension is expected to impact a range of exports, including South African auto parts, wine, and Rwandan coffee.
US Trade Representative Jamieson Greer informed Congress about the decision, citing “barriers that undermine American trade and investment and practices that pose a threat to US national security and foreign policy interests in the region.” South Africa has been the largest beneficiary of AGOA, exporting approximately $1.7 billion in goods to the US under the program in 2025. Major exports from South Africa include car parts, citrus fruits, and wine, while Rwanda primarily exports coffee and minerals.
In response to the announcement, South Africa’s trade ministry expressed its intention to support sectors affected by the decision. Trade Minister Parks Tau stated that the United States is raising issues not previously discussed during negotiations that began in 2025. He acknowledged the negative impact this decision could have on workers and businesses while emphasizing the importance of the AGOA program to South Africa. However, he also noted that the economic relationship with the US extends beyond AGOA.
Currently, Rwanda is under a partial suspension that has been in effect since 2018, preventing it from exporting apparel to the US under AGOA due to import tariffs viewed as trade barriers by the US.
Lawmakers have reacted to the suspension, with Representative Richard Neal, the top Democrat on the House Committee on Ways and Means, criticizing the decision. He described it as another grievance-based trade decision and called for a detailed explanation regarding the suspension and potential steps South Africa could take to be reinstated.
According to Ebenezer Obadare of the Council on Foreign Relations, while South Africa can still export to the US, these exports will occur under less favorable conditions. He suggested that the US decision may encourage African nations to explore alternative trading strategies. He noted that AGOA exports represent about 10 percent of South Africa’s total exports to the US and only 1 percent of its global exports.
Previously, President Cyril Ramaphosa indicated that South Africa should prepare for the possibility of being cut from the program, stressing that efforts to seek new markets were already underway.
