The United States has notified Congress and the governments of Rwanda and South Africa of its intention to terminate their participation in the African Growth and Opportunity Act (AGOA) trade programme from January 1, 2027.
The decision follows an annual review of sub-Saharan African countries eligible for the programme, which grants duty-free access to the US market for qualifying exports. The US cited “practices inconsistent with the deal’s eligibility criteria,” including trade barriers and activities that threaten US national security.
South Africa’s AGOA exports dropped by 57% ahead of the announcement, according to the Department of Trade, Industry and Competition. The decline is attributed to the 60-day notice given by the Trump administration in 2020, which warned of the potential termination of benefits.
Rwanda was also notified of the move, with the US citing similar concerns over trade practices. The decision affects both countries’ ability to export goods to the US without tariffs, impacting industries such as agriculture, manufacturing, and automotive.
The African Growth and Opportunity Act, enacted in 2000, aims to promote economic development in Africa by providing preferential trade access to the US. The US has previously suspended or terminated participation of other African nations under the programme.
This move marks another step in the US’s ongoing review of trade relationships with African countries, reflecting broader geopolitical and economic considerations. The full impact of the decision will depend on the outcome of future negotiations and potential policy changes.
