US moves to end duty-free trade benefits for South Africa, Rwanda over human rights concerns

The United States says it plans to suspend South Africa and Rwanda from the African Growth and Opportunity Act (AGOA), a duty-free trade programme for sub-Saharan African countries, from January 1, 2027.

Jamieson Greer, US trade representative, spoke in a statement on Monday.

Greer said President Donald Trump has determined that the two countries’ governments are engaging in practices inconsistent with the programme’s eligibility requirements.

The trade representative cited concerns about human rights, corruption, barriers to American trade and investment, and threats to US national security and foreign policy interests.

“President Trump found that the governments of Rwanda and South Africa are engaging in practices that are inconsistent with AGOA’s eligibility criteria,” Greer said.

Enacted in 2,000, AGOA provides eligible sub-Saharan African countries with duty-free access to the US market for thousands of products.

South Africa was the programme’s largest beneficiary, exporting about $1.7 billion worth of goods to the US under AGOA in 2025. Its major exports include car parts, citrus fruit and wine, while Rwanda exports coffee and minerals.

US CITES HUMAN RIGHTS, TRADE CONCERNS

The planned suspension comes amid strained relations between Washington and Pretoria.

The Trump administration had accused South Africa’s government of persecuting white South Africans, an allegation Pretoria has rejected as false.

The White House also criticised South Africa’s foreign policy, particularly its genocide case against Israel at the International Court of Justice. Israel denied the allegation.

Leo Brent Bozell III, US ambassador to South Africa, said the country’s removal from the programme was a consequence of its government’s rejection of concerns raised by Washington.

“It is regrettable that South African policies led to the termination of AGOA for South Africa,” the ambassador said in a post on X.

“This was a predictable and preventable outcome resulting from the rejection by South Africa’s government of real concerns raised by the US Government.”

South Africa’s trade ministry said it is prepared for an unfavourable outcome from the eligibility review but remains open to dialogue with the US.

The ministry also said exports under AGOA accounted for about 10 percent of South Africa’s total exports to the US and 1 percent of its global exports.

President Cyril Ramaphosa said the country is preparing for a possible loss of the trade benefits by seeking new markets and pursuing trade agreements with partners, including China.

RWANDA FACES SEPARATE TRADE RESTRICTIONS

Washington also raised concerns about human rights and the rule of law in Rwanda.

The proposed suspension comes amid tensions over the conflict in eastern Democratic Republic of Congo, where the US had accused Rwanda of supporting rebels.

The US had imposed sanctions on several Rwandan individuals and institutions, including the country’s military and a gold refinery.

Rwanda has also faced a partial AGOA suspension since 2018, when Washington barred its apparel exports under the programme over import tariffs it considered a barrier to trade.

The latest suspension is scheduled to take effect on January 1, 2027. (TheCable)