US Moves to Remove South Africa From AGOA Trade Programme
- US President Donald Trump has notified Congress of his intention to strip South Africa of preferential trade access under AGOA from 1 January 2027
- US Trade Representative Jamieson Greer cited practices that allegedly fail to meet AGOA eligibility requirements, including barriers to American trade and investment
- AfriForum blamed President Ramaphosa directly, pointing to the Expropriation Act and the government's foreign policy as key factors behind the exclusion
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SOUTH AFRICA — The United States government has formally notified Congress of its intention to terminate South Africa's eligibility under the African Growth and Opportunity Act (AGOA), with the change set to take effect on 1 January 2027.
Rwanda is also facing removal from the programme under the same announcement.
What is AGOA and why does it matter?
AGOA is a preferential trade arrangement that allows qualifying African countries to export thousands of goods to the US market without paying import duties. Its primary purpose is to stimulate trade and economic development across the continent.
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US Trade Representative Jamieson Greer stated that an annual review of the programme found South Africa and Rwanda were engaged in practices inconsistent with AGOA's eligibility criteria. Greer confirmed that both governments had been formally notified of the decision.
The administration also cited concerns over barriers to American trade and investment, corruption, and issues it believes undermine US national security and foreign policy interests in the region. No specific examples of the alleged practices were included in the announcement.
See US letter posted on X here:
Bozell and AfriForum react to AGOA decision
US Ambassador to South Africa Leo Brent Bozell III responded to the announcement on X, describing the country's exclusion as regrettable but avoidable. He attributed the outcome to South African government policies, arguing that Pretoria had repeatedly dismissed concerns raised by Washington. Bozell said he remained hopeful a path forward could be found but stressed that the South African government must recognise the gravity of the situation. He added that he would continue working toward a bilateral partnership as swiftly as possible.
Civil rights organisation AfriForum and Solidarity placed the blame squarely on President Cyril Ramaphosa and other ANC leaders in government. The organisation argued that South Africa's foreign policy positions, combined with the signing of the Expropriation Act, had eroded the relationship with Washington. AfriForum said it had previously cautioned Ramaphosa about the potential trade consequences of that legislation. It warned that ordinary South Africans, particularly workers in export-dependent sectors, could face job losses as a result.
Ramaphosa warns SA on potential loss of AGOA agreement
Previously, Briefly News reported that President Cyril Ramaphosa publicly acknowledged that South Africa may lose access to the African Growth and Opportunity Act (AGOA), warning that the country must begin preparing for that outcome. Ramaphosa described the potential job losses as "devastating," underscoring the scale of the economic risk facing the country.
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Source: Briefly News
