Donald Trump plans to remove South Africa and Rwanda from a trade agreement that provides preferential tariff benefits to both countries, citing their conduct as inconsistent with eligibility criteria.
Foreign news agencies reported on 3 Nov 2026 that U.S. President Donald Trump notified Congress of his intention to exclude South Africa and Rwanda from the African Growth and Opportunity Act (AGOA) preferential trade program, effective from 1 Jan 2027.
U.S. Trade Representative Jaymeison Greer stated in a press release that the annual review found both South Africa and Rwanda failed to meet the program's eligibility requirements, adding that the Trump administration has already informed both countries of this decision.
In a letter sent to South African President Cyril Ramaphosa, Donald Trump cited issues of corruption, trade and investment barriers such as restrictions on agricultural market access and intellectual property rights as reasons for removing South Africa from the program.
Trump’s letter also stated that South Africa's actions regarding international security and its relationships and cooperation with governments considered threats to Washington undermine U.S. security and foreign policy.
Regarding Rwanda, the U.S. expressed concerns about human rights issues, political polarization, rule of law, and labor rights as reasons for removing the African nation from the program.
Last week, the U.S. Treasury Department sanctioned Rwanda’s Ministry of Defense for evidence of sending troops and supplying arms to the M23 rebel group in the Democratic Republic of Congo, though Rwandan authorities denied these allegations.
South African Trade Minister Parks Tau described the U.S. decision as "regrettable," saying the U.S. introduced new issues never previously discussed as grounds for the accusations.
However, South Africa is trying to mitigate the impact by diversifying its export markets, noting that the majority of export value—about 89%—already uses the World Trade Organization’s Most-Favored-Nation (MFN) status, with only 10% relying on AGOA, down from 28% in 2024.
South Africa emphasized that the U.S. still depends on 12 critical minerals from the country, including isotopes used in cancer treatment, of which the U.S. imports up to 70% of its total demand from South Africa.
Oxford Economics, a leading global economic consultancy, warned that this U.S. measure will increase pressure on South Africa’s manufacturing sector, especially the automotive industry, which is already struggling against cheap Chinese imports.
Meanwhile, Rwanda’s exports to the U.S. rose to $43.3 million in 2025, but the U.S. accounts for only 2% of Rwanda’s total exports, with just 4% using AGOA preferences, so the economic impact on Rwanda is limited as its main trading partners remain neighboring countries and Asian markets.
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Source:bbc