US Moves to Remove Rwanda and South Africa From AGOA From 2027

November 3, 2026 | By Semahegn Nigatu

The United States plans to remove Rwanda and South Africa from the African Growth and Opportunity Act (AGOA) trade preference programme from January 1, 2027, threatening preferential access to the US market for exports from two African economies.

President Donald Trump has notified Congress and the governments of the two countries of his intention to terminate their participation in the programme following an annual review of eligibility requirements, the Office of the US Trade Representative (USTR) said on Monday.

US Trade Representative Jamieson Greer said the review found that both governments were engaging in practices inconsistent with AGOA's eligibility criteria, citing barriers to American trade and investment and concerns relating to US national security and foreign policy interests.

Washington identified additional concerns specific to each country. For Rwanda, these include the rule of law, political pluralism, internationally recognised workers' rights, human rights and trade and investment restrictions.

In South Africa, the US administration cited barriers to American trade and investment, corruption and what it described as threats to US national security and foreign policy interests.

Greer said the Trump administration was working to ensure African partners take the necessary steps to meet the programme's eligibility requirements.

The proposed removal carries particular significance for South Africa, which is the programme's largest beneficiary. The country exported approximately 1.7 billion US dollars in goods to the US under AGOA in 2025, including automotive products, citrus and wine, according to Reuters.

Rwanda also uses the programme to access the American market, with coffee and minerals among its key exports.

Established in 2000, AGOA provides eligible sub-Saharan African countries with preferential duty-free access to the US market for more than 1,800 products, in addition to products covered under the US Generalized System of Preferences programme. Eligibility is reviewed annually and requires participating countries to meet conditions relating to market-based economic policies, the rule of law, political pluralism, workers' rights and human rights.

The decision comes amid strained relations between Washington and Pretoria, while the US has also raised concerns over Rwanda's political and security policies.

The proposed terminations would take effect at the beginning of 2027, potentially exposing exporters in both countries to tariffs that do not apply under AGOA.

Source: FSX Business News