Trump Signs Off on Deep Cut: US Drops South Africa and Rwanda from AGOA

POLICY WIRE — Washington, D.C. — The United States is set to cut off South Africa and Rwanda from a major trade preference program. President Donald Trump has formally notified Congress and both governments of his intention to remove them from AGOA.

This directive was announced on November 2 by the Office of the United States Trade Representative (USTR). The move effectively shuts these two nations out of the world’s largest economy, which possesses a market valued at $33 trillion.

US Trade Representative Jamieson Greer explained that the decision resulted from an annual interagency review. The findings indicated that both governments were engaging in practices inconsistent with the program’s eligibility requirements.

Greer stated that President Trump found the governments of Rwanda and South Africa were acting in ways that defy AGOA’s criteria for continued participation.

The administration highlighted specific issues, citing barriers that undermine American trade and investment. It also pointed to practices posing threats to U.S. national security and foreign policy interests in the region.

For Rwanda, the USTR cited a broader set of concerns. These included trade barriers, issues regarding the rule of law, and political pluralism. The report also mentioned violations of internationally recognized workers’ rights and human rights.

In the case of South Africa, the administration focused on barriers to American business. It also raised concerns about corruption and potential threats to U.S. national security and foreign policy goals.

Despite the negative finding, Greer noted that the administration encourages African partners to take the necessary steps to meet eligibility. This leaves a window for engagement before the planned termination date.

South Africa faces significant financial exposure as the current largest beneficiary of AGOA. In 2025, the country exported approximately $1.7 billion worth of goods to the US under this program.

The eligible exports include vehicles, agricultural products, clothing, and various manufactured goods. These items currently benefit from duty-free access.

Pretoria has been actively lobbying Washington to retain its access. Trade, Industry and Competition Minister Parks Tau previously stated that the government had submitted proposals to address American concerns.

Tau affirmed that the South African government remained open to negotiations to resolve the disputes. The country is working to ensure it continues to meet the required standards.

Rwanda has a history with AGOA restrictions as well. In 2018, Washington suspended duty-free treatment for apparel exports after Kigali restricted imports of used clothing from the US.

AGOA was established in 2000 to provide eligible sub-Saharan African countries with duty-free access to the US market. The program covers more than 1,800 products.

The legislation was extended through December 31, 2026. This extension came after Trump signed a one-year reauthorisation in February.

The planned termination will not end all ordinary trade between the US and the two African countries. However, it could make affected exports more expensive by removing preferential tariff treatment.

Reporting by Policy-Wire (PW)