Washington plans to end South Africa and Rwanda’s eligibility for AGOA in 2027

Key Facts

The U.S. Trade Representative announced that President Donald Trump had notified Congress and the governments of South Africa and Rwanda of his intention to end their eligibility for the African Growth and Opportunity Act, or AGOA, effective January 1, 2027. The announcement came on November 2, 2026, after an annual interagency review led by the Office of the U.S. Trade Representative. The office said the review found that the two countries were pursuing policies inconsistent with the program’s eligibility requirements. The planned decision gives Washington a way to use trade preferences as leverage tied to standards extending beyond trade to governance, workers’ rights, security considerations and foreign policy. The announcement did not describe the action as a complete loss of access to the U.S. market, since ending eligibility means the removal of the preferential treatment the program provides.

The Office of the U.S. Trade Representative identified a set of concerns for each country. In Rwanda, it cited trade and investment barriers, the rule of law and political pluralism, internationally recognized workers’ rights and human rights, as well as U.S. national security and foreign policy concerns. For South Africa, it cited trade and investment barriers and corruption, along with national security and U.S. foreign policy considerations. The office said the practices underlying the decision included those undermining U.S. trade and investment and those threatening Washington’s security and foreign policy interests in the region. Its statement gave no specific examples of the barriers or security and political issues, according to the Associated Press. The South African government said it had made additional concessions through the appropriate channels, going beyond those it offered in 2015, while maintaining that the concessions respected due process, biosafety, constitutional requirements and World Trade Organization obligations.

The share of South African exports directly exposed to the loss of AGOA preferences differs from its total trade with the United States. South Africa’s Department of Trade, Industry and Competition said exports covered by the program totaled about $1.7 billion in 2025, down from $4 billion in 2024, and accounted for about 1% of the country’s total exports to the world. According to the department, about 89% of South African exports to the United States in 2025 entered under the World Trade Organization’s normal most-favored-nation terms, compared with about 10% under AGOA. AGOA’s share had been 28% in 2024, indicating that reliance on the exemption had declined before the U.S. announcement. In 2023 data, South Africa was the second-largest overall exporter under AGOA after Nigeria, but the largest exporter of non-crude-oil products, worth $3.6 billion. Those exports included passenger cars, yachts and sailboats, precious jewelry, chemicals and citrus fruit, according to the 2024 report by the Office of the U.S. Trade Representative.

Ending South Africa’s eligibility does not necessarily mean its exports to the U.S. market will stop, but it could raise the cost of entry for some products. Agricultural economist Wandile Sihlobo told Reuters that exclusion did not necessarily mean losing the market, but would add tariffs, estimating the increase at about 3.4% for most products. Fruit is among the sectors that could have difficulty redirecting shipments; Reuters quoted citrus growers as saying fruit grown for the U.S. market cannot easily be redirected. South Africa’s trade union organization estimated potential job losses could reach a few thousand. A Congressional Research Service report also found that passenger cars and their parts accounted for 64% of South African products eligible for AGOA in 2024, underscoring the sector’s exposure to changes in preferential access terms.

AGOA was launched in 2000 to provide duty-free access to the U.S. market for certain goods from eligible African countries. Countries’ membership is reviewed annually, and more than 30 African countries were in the program, according to the Associated Press. Congress extended the program through December 2026 in a one-year extension, according to the Congressional Research Service, making Washington’s deadline for South Africa and Rwanda part of a framework approaching its end. Rwanda had previously lost AGOA’s duty-free benefits for apparel in 2018 after Kigali raised tariffs on imported used clothing and footwear. The current move therefore comes in the context of using sectoral and country eligibility in program reviews, while the scope of the action announced this time differs by covering both countries’ eligibility for the program.

South African Trade Minister Parks Tau said the U.S. decision did not define the entire bilateral relationship and that reaching a solution depended on both sides’ willingness to find one. The government said it would support affected sectors and continue pursuing trade and investment opportunities while diversifying export markets. The markets the department said it was targeting included the African Continental Free Trade Area, India, the European Union, the United Kingdom, the Association of Southeast Asian Nations, Mercosur and China. The statement pointed to new market opportunities for some agricultural exports without specifying their value. In Washington, U.S. Trade Representative Jamieson Greer said the administration was working to ensure the two African partners took the steps needed to meet eligibility criteria. Countries can be reinstated in the program, according to the Associated Press, while the announced date for ending the two countries’ eligibility remains January 1, 2027.