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Why South Africa, Rwanda are losing America’s $60.3bn duty-free trade access

The United States has disclosed that it will suspend South Africa and Rwanda from the duty-free trade benefits under the African Growth and Opportunity Act (AGOA), effective January 1, 2027.

Speaking on Monday, US Trade Representative Jamieson Greer, said both countries had failed to meet AGOA’s eligibility criteria.

Both African countries are set to lose a combined return of $60.3 billion from the suspension.

South Africa has been the largest beneficiary of the programme, exporting about $1.7bn worth of goods to the US under AGOA in 2025. Rwanda exported a total of $43.3 million in 2025.

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


Rwanda, which was also suspended in 2018, was suspended over her trade barriers, rule of law and human rights issues, while concerns about South Africa was on barriers to US trade and investment, corruption and threats to US national security and foreign policy interests.

The US, which reviews eligibility of beneficiaries annually, said it expects AGOA beneficiaries to meet eligibility requirements covering progress towards market-based economies, good governance and the elimination of barriers to US trade and investment.

South Africa’s Department of Trade, Industry and Competition said last week it was prepared for a negative outcome from the AGOA eligibility review and that it remained open to dialogue with the US.

Rwanda’s main exports to the United States include coffee, tea and minerals.


Quick facts about South Africa, Rwanda and AGOA


South Africa had been the largest beneficiary of AGOA, exporting more goods than any other country under the programme.
• In 2025, South Africa exported goods worth about $1.7 billion under AGOA, while total US imports under the programme were about $5 billion.
• AGOA exports made up about 1% of South Africa’s total global exports in 2025, according to the country’s trade ministry
• Almost 90% of South Africa’s exports to the US did not benefit from AGOA.
• The US is South Africa’s second largest export destination after China.
• South Africa’s bilateral trade with the US reached about $29 billion in 2025, while its bilateral trade with China was around $36 billion in the same year.
• South Africa’s main exports to the US include precious stones and metals, motor vehicles, iron and steel.
• Its exports under AGOA are mainly motor vehicles and parts, as well as farm products such as citrus fruits and wine.
• During his first administration in 2018, President Donald Trump suspended Rwanda’s right to export clothing duty-free to the United States over Kigali’s decision to increase tariffs on imports of used clothing and footwear.
• Rwanda exports mainly coffee and tea, alongside smaller agricultural, processed and mineral shipments to the United States under AGOA.
• Goods imported from Rwanda totalled $43.3 million in 2025, up 43.3% ($13.1 million) from 2024, according to US import data, though official sources do not specify how much entered under AGOA preferences.
• AGOA eligibility is based on factors including the country’s level of economic development, governing based on the rule of law and respect for human rights.
• Eligible countries must not undermine US national security or foreign policy interests, according to the act.
• Previous countries that have lost eligibility include Ethiopia, Burkina Faso, Cameroon, Central African Republic and others, mainly because of issues with human rights and rule of law.

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