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The United States Trade Representative announced on Monday that Washington will exclude South Africa and Rwanda from the African Growth and Opportunity Act (AGOA) starting January 1.
US Trade Representative Jamieson Greer stated that pervasive barriers undermining American investment, along with actions threatening US national security and foreign policy interests, prompted the decision.
Although Washington recently renewed the duty-free trade framework through 2028, officials review beneficiary eligibility on an annual basis.
The termination deals a major blow to South Africa, the programme’s largest economic beneficiary.
Washington intensified its scrutiny of Pretoria following diplomatic tensions and false allegations regarding Afrikaner discrimination, which South African officials strongly rejected.
While Trade Minister Parks Tau expressed hope for a favourable outcome last week, President Cyril Ramaphosa warned the nation to brace for removal while actively pursuing alternative global trade partners.
The decision also heightens economic pressure on Rwanda following its alleged support for the M23 rebel group operating in the Democratic Republic of Congo.
Washington recently sanctioned the Rwandan defence ministry over these ties, pointing to the ongoing conflict near valuable mineral deposits in eastern DRC.
Rwandan Foreign Minister Olivier Nduhungirehe denied supporting the insurgents and rejected accusations that his country serves as a scapegoat for Congolese political instability.
