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US Moves to Remove South Africa, Rwanda from AGOA Trade Preferences

The United States has announced plans to exclude South Africa and Rwanda from a major duty-free trade arrangement with African countries, citing concerns over practices it considers inconsistent with the programme’s eligibility requirements.

The US Trade Representative, Jamieson Greer, announced the decision on Monday, saying the exclusions would take effect on January 1.

Greer said the concerns included barriers that undermine American trade and investment, as well as practices considered threats to US national security and foreign policy interests in the region.

The decision affects the African Growth and Opportunity Act, AGOA, which provides eligible sub-Saharan African countries with preferential access to the US market.

Although the programme has been renewed until the end of 2028, participating countries remain subject to annual eligibility reviews.

South Africa is the largest beneficiary of the arrangement, making its proposed exclusion a significant development for its trade relationship with the United States.

Its eligibility has come under increasing scrutiny amid tensions between Washington and Pretoria. The US has criticised aspects of South Africa’s domestic policies, including allegations of discrimination against white Afrikaners, claims the South African government has rejected.

Rwanda is also facing increased economic and diplomatic pressure from Washington over its alleged support for the M23 armed group operating in the neighbouring Democratic Republic of Congo.

The Rwandan government has denied backing the rebels. However, the United States recently imposed sanctions on Rwanda’s defence ministry over the alleged links.

The M23 movement has seized territory in eastern DR Congo since resuming its armed campaign in 2021. The region is rich in valuable minerals and has remained a major centre of conflict.

Rwanda’s Foreign Minister recently told AFP that his country should not be made a scapegoat for developments in eastern DR Congo.

The planned exclusions could affect the two countries’ access to preferential trading terms under AGOA, although the precise economic impact will depend on the products and trade flows affected.

The decision also adds to broader tensions between Washington and African governments over trade, security and foreign policy.

Deborah Adeyefa