US President Donald Trump has notified Congress of his intention to remove South Africa and Rwanda from the African Growth and Opportunity Act (AGOA), potentially ending their preferential access to the US market from January 1, 2027.
AGOA allows eligible African countries to export thousands of products to the United States duty-free. However, the US administration says an annual review found that both countries were engaging in practices inconsistent with the programme’s eligibility requirements.
US Trade Representative Jamieson Greer said the administration had formally notified the two countries, citing barriers to American trade and investment, as well as concerns relating to national security and foreign policy interests in the region.
South Africa faces trade and foreign policy concerns
In a letter to South African President Cyril Ramaphosa, Trump raised concerns about Pretoria’s international security policies and its relations and cooperation with governments that Washington considers a concern. He said these issues risked undermining US national security and foreign policy interests.
The US also accused South Africa of maintaining significant barriers to American trade and investment, including restrictions affecting agricultural market access, regulatory requirements, investment protections and intellectual property. Corruption was also cited among Washington’s concerns.
“The Trump administration is working to ensure our African partners take the necessary steps to meet the eligibility criteria,” Greer said.
South Africa’s Trade Minister, Parks Tau, described the decision as “unfortunate”, arguing that Washington was introducing new issues that had not featured in trade negotiations between the two countries, which began in 2025.
Tau said South Africa would continue accelerating the diversification of its export markets to protect jobs.
AGOA accounts for a smaller share of South African exports
South Africa has sought to highlight that its broader trade relationship with the US extends beyond AGOA preferences.
Government figures indicate that approximately 89% of South African exports to the US entered under ordinary World Trade Organization most-favoured-nation terms in 2025, while around 10% benefited from AGOA. The latter figure was down from 28% in 2024.
The value of South African exports under the programme fell to approximately $1.7 billion in 2025, compared with $4 billion in 2024, according to Tau.
Despite the decline in AGOA-related exports, bilateral trade between South Africa and the US reached $28.8 billion in 2025. More than 600 American companies operate in South Africa, supporting approximately 134,600 jobs.
Pretoria maintains that the two economies have complementary trade interests. South Africa supplies 12 of the 50 minerals classified as critical by the US, as well as 70% of the isotopes used by the country for applications that include cancer treatment.
South African manufacturers also incorporate American inputs into products exported to the US under AGOA, including vehicles and boats.
US Ambassador to South Africa Leo Brent Bozell III said the termination was regrettable and attributed the outcome to South Africa’s response to concerns raised by Washington.
“This was a predictable and preventable outcome resulting from the rejection by South Africa’s government of real concerns raised by the US,” he wrote on X.
Decision adds to strained diplomatic relations
The proposed removal comes amid strained relations between Washington and both South Africa and Rwanda, placing their preferential access to the US market at risk.
Relations between the US and South Africa have been particularly tense. Last year, Trump accused the South African government of persecuting its white minority and introduced a programme allowing white Afrikaners to seek asylum in the US. He also repeated claims of a genocide targeting South Africa’s white population, allegations that have been widely discredited.
The proposed January 2027 termination would mark a significant change in South Africa’s trade arrangements with the US, although the extent of its impact will depend on the products affected and the countries’ ability to maintain or negotiate alternative trade arrangements.