Deals & regulation
US moves to remove South Africa and Rwanda from preferential trade programme
The Trump administration notified Congress that it intends to remove South Africa and Rwanda from eligibility for the African Growth and Opportunity Act from January 2027. Washington cited trade barriers, security and foreign-policy concerns, corruption allegations against South Africa, and rights and rule-of-law concerns in Rwanda. Pretoria called the decision unfortunate and said it would diversify export markets. The immediate tariff exposure may be limited because much of both countries’ US trade already enters under ordinary terms, but affected industries could face additional pressure.
Editorial summary · Publisher article
What matters
- Agoa gives eligible African countries duty-free access for thousands of products.
- South African exports using Agoa fell to about $1.7bn in 2025, according to its trade minister.
- The US says Rwanda’s defence ministry supported M23 rebels in eastern DR Congo; Rwanda denies backing M23.
- South Africa supplies the US with critical minerals and medical isotopes, adding strategic importance to the trade dispute.
Context & caveats
- The removal is a stated intention for January 2027 and may have further political or legal developments.
Why this made the edition
The report gives the policy decision, stated US rationale, trade exposure and country-specific consequences, with useful context on the limited share of exports receiving Agoa preferences.
Source material