South Africa is facing the prospect of losing preferential access to the United States market under the African Growth and Opportunity Act (AGOA) after US President Donald Trump notified Congress of his intention to terminate the country’s participation in the trade programme from January 1, 2027.
The announcement, made on Monday, represents a major setback for Pretoria’s efforts to preserve duty-free access to the American market amid deteriorating diplomatic relations between the two countries.
US Trade Representative Jamieson Greer said the decision followed an annual interagency review of sub-Saharan African countries’ eligibility for the programme.
“Based on the review, President Trump found that the governments of Rwanda and South Africa are engaging in practices that are inconsistent with AGOA’s eligibility criteria,” Greer said.
He said the concerns included practices that undermine American trade and investment and those considered threats to US national security and foreign policy interests in the region.
“These concerning and pervasive practices include, but are not limited to, barriers that undermine American trade and investment and practices that pose a threat to U.S. national security and foreign policy interests in the region.”
“The Trump Administration is working to ensure our African partners take the necessary steps to meet the eligibility criteria,” Greer said.
The notification signals Washington’s intention to remove South Africa from the programme, although the administration has indicated that it wants African partners to address its concerns.
South Africa-US relations deteriorate
The decision comes against the backdrop of increasingly strained relations between Pretoria and Washington since Trump returned to the White House in January 2025.
The diplomatic fallout has included the suspension of US foreign aid to South Africa, the expulsion of former South African ambassador Ebrahim Rasool and Washington’s repeated criticism of Pretoria’s domestic and foreign policies.
Trump has also made allegations of a so-called “white genocide” in South Africa, claims rejected by the South African government.
The two countries have clashed over South Africa’s land reform policies, affirmative action and its foreign policy positions, particularly its legal action against Israel at the International Court of Justice over alleged genocide in Gaza.
South Africa has defended its sovereign right to determine its domestic policies and pursue an independent foreign policy.
The diplomatic dispute has also extended to the G20, with Washington refusing to accredit South Africa for official US-hosted G20 meetings, further highlighting the deterioration in relations.
Trade and jobs at risk
AGOA allows qualifying African nations to export thousands of products to the US without paying import duties. These include vehicles, textiles and agricultural products.
South Africa is the biggest beneficiary of the trade initiative, making its automotive, farming and manufacturing industries particularly vulnerable to any decision to remove the country from the programme.
Trade between South Africa and the US amounted to $28.8 billion in 2025. More than 600 US companies have a presence in South Africa, collectively employing over 130,000 people.
The proposed withdrawal from AGOA threatens to further undermine South Africa’s preferential access to the American market, placing additional strain on diplomatic relations already characterised by growing tensions.
Rwanda also faces exclusion
South Africa is not the only African country facing exclusion from AGOA.
Greer confirmed that Trump had also notified Congress and the Rwandan government of his intention to terminate Rwanda’s participation in the programme from January 1, 2027.
The US administration has accused both countries of engaging in practices inconsistent with the programme’s eligibility requirements.
The announcement follows Washington’s concerns over Rwanda’s involvement in the conflict in the eastern Democratic Republic of Congo, alongside broader regional security and foreign policy issues.
