WASHINGTON — US Trade Representative Jamieson Greer said on Monday that Washington will suspend South Africa and Rwanda from its flagship duty-free trade program for sub-Saharan Africa, a move that would hit exports including South African auto parts, wine and Rwandan coffee.
Greer notified Congress the two countries would be suspended from the African Growth and Opportunity Act, or AGOA, from Jan 1, 2027.
The program has been the centerpiece of United States' economic engagement with Africa since it was enacted in 2000, offering duty-free access to the US consumer market for thousands of products from eligible countries.
South Africa has been the largest beneficiary of the US program, exporting about $1.7 billion worth of goods to the US under AGOA in 2025. Its main exports include car parts, citrus fruit and wine, while Rwanda's include coffee and minerals.
South Africa's trade ministry late on Monday said it would support sectors affected by the decision and continue pursuing trade, investment and shared economic opportunities with the United States.
Trade Minister Parks Tau said Washington was raising issues that had not previously featured in negotiations. "It is however unfortunate that the US is now raising new issues that have not been the basis for discussions as part of the negotiations process that commenced in 2025," he said. Tau acknowledged the impact on workers, exporters and businesses but said the government would support affected industries.
"AGOA remains important to South Africa, but it does not constitute the totality of the economic relationship between South Africa and the United States," he said.
There was no immediate reaction from Rwanda.
Washington said both countries were being suspended due to "barriers that undermine American trade and investment and practices that pose a threat to US national security and foreign policy interests in the region".
Rwanda has been subject to a partial suspension since 2018 that does not allow it to export apparel under AGOA, due to import tariffs the US considers a barrier to trade.
The top Democratic lawmaker on the House Committee on Ways and Means criticized the US decision.
"It's yet another trade decision grounded in grievance that flies in the face of what responsible policy should be," said Representative Richard Neal, urging a more thorough explanation "and what steps South Africa can take to be reinstated to the program".
Ebenezer Obadare, an expert with the Council on Foreign Relations, said South Africa could still export to the US, just on less favorable terms, and the US move would likely prompt African nations to diversify their trade strategies.
"I won't be surprised if they don't already have some alternatives lined up," he said. "Ten percent is not a trivial number, but it's not 90 percent, it's not 60 percent."
Exports under AGOA make up only about 10 percent of its total exports to the US and 1 percent of its total global exports, South Africa's trade ministry noted.
President Cyril Ramaphosa had also said in recent weeks that South Africa must prepare for being cut out of the program, and that it was already doing so by seeking new markets.
AGENCIES VIA XINHUA
