Washington to Exclude South Africa and Rwanda from AGOA Starting January 1
Key Facts
The United States has decided to exclude South Africa and Rwanda from the preferential benefits of the African Growth and Opportunity Act (AGOA), eNCA reported on November 2, in a shift from expectations before the announcement. The network said the exclusion is set to take effect on January 1. It quoted U.S. Trade Representative Jamieson Greer as saying the decision is linked to practices deemed inconsistent with eligibility standards. The reasons Greer cited include barriers he said undermine U.S. trade and investment, as well as concerns related to U.S. national security and foreign policy in the region. The decision puts South Africa’s preferential tariff treatment on course for a change at the start of the year, while it does not in itself mean an end to broader bilateral trade.
AGOA allows eligible countries in sub-Saharan Africa to enter the U.S. market duty-free for more than 1,800 products, in addition to more than 5,000 products eligible under the Generalized System of Preferences, according to SAnews. Countries’ eligibility is reviewed annually, according to the U.S. Federal Register, which said the president is required to monitor and review each country’s progress. Under the rules set out in the register, beneficiary status can be withdrawn, or benefits suspended or restricted. The United States had included South Africa among the beneficiary countries for 2026, according to the same register. The announced exclusion decision concerns preferential benefits and does not describe total trade between the two countries.
U.S. Trade Representative data show that trade in goods and services between the United States and South Africa reached $28.8 billion in 2025, up 10.1%, or $2.6 billion, from 2024. The total includes U.S. exports and imports, according to the office’s definition, and is not limited to exports that benefit from AGOA. Two-way goods trade reached $22.7 billion in 2025, with U.S. exports to South Africa valued at $6.3 billion and imports from the country at $16.5 billion. This resulted in a U.S. goods trade deficit of $10.2 billion. Services trade totaled $6.0 billion, with U.S. exports of $4.0 billion and imports of $2.0 billion, and the office estimated the U.S. services surplus at $1.9 billion.
The benefits are significant for South Africa’s exporting sectors. A Congressional Research Service report said passenger cars and parts accounted for 64% of South African products eligible under AGOA in 2024, and that the country was the program’s largest supplier of non-oil imports. South Africa’s Parliamentary Budget Office estimated duty-free eligible exports at $3.6 billion in 2022, equivalent to about 25% of the country’s exports to the United States that year. eNCA said agricultural sectors benefiting from the program include processed fruit, nuts, wine and other goods. The network quoted agricultural expert Wandile Sihlobo as saying the citrus and nut sectors have a degree of relative resilience. These sectors add to the trade decision’s impact on the automotive and agricultural industries, whose exports rely on preferential access.
South African Trade, Industry and Competition Minister Parks Tau said his country had submitted practical proposals through official channels and that he did not consider it appropriate to disclose their details publicly while engagement continued. He added that South Africa would be given 60 days to address U.S. concerns if they persisted, before benefits could be suspended in whole or in part. Tau met U.S. Trade Representative Jamieson Greer in Washington in September to discuss bilateral trade relations and AGOA’s future, following two rounds of talks at senior-official level, according to SAnews. Tau’s account of the period points to a process for addressing concerns before any possible suspension, but does not change the exclusion’s effective date reported by eNCA. Tau said: "We have put forward practical proposals through the appropriate channels, and it would not be appropriate to disclose their details publicly while this engagement continues."
The interests Tau outlined in the context of the talks include U.S. companies’ operations in South Africa. He said more than 600 U.S. companies operate there and support about 134,600 jobs. He added that U.S. companies had made investment commitments exceeding $5 billion in the year before his statement. He also said South Africa supplies 12 of the 50 minerals the United States classifies as critical and is ready to partner in processing them locally. At the same time, Tau said his country is working to expand markets through the African Continental Free Trade Area, India, the Southern African Development Community, the European Union, the United Kingdom, ASEAN, Mercosur and China. He added that new markets had opened for citrus, avocados, grapes and apples, while the scheduled exclusion from AGOA benefits takes effect on January 1.