President Donald Trump has notified Congress and the governments of South Africa and Rwanda that he intends to terminate their eligibility for the African Growth and Opportunity Act (AGOA) trade-preference program from Jan. 1, 2027, citing trade barriers and concerns over US national-security and foreign-policy interests.
The decision follows an annual interagency eligibility review led by the Office of the US Trade Representative. Ambassador Jamieson Greer said the review found practices in both countries inconsistent with the program’s requirements, putting their preferential access to the American market at risk.
“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,” Greer said in the Nov. 2 statement.
The announcement signals an intended withdrawal of trade preferences—not a ban on imports from either country. It also does not mean their eligibility ends immediately: the administration specified January as the intended effective date.
Washington identified a broader range of concerns in Rwanda than in South Africa. For Rwanda, the statement cited trade and investment barriers, rule of law, political pluralism, internationally recognized worker rights, human rights and threats to US security and foreign-policy interests.
For South Africa, it cited trade and investment barriers, corruption and threats to US security and foreign-policy interests.
AGOA eligibility extends beyond commercial policy. The criteria include progress toward a market-based economy, the rule of law, poverty reduction, anti-corruption systems and protection of worker rights. Countries must also avoid activities that undermine US national-security or foreign-policy interests and gross violations of internationally recognized human rights.
That structure gives the administration leverage over both economic and diplomatic relationships. The latest announcement makes clear that lowering trade barriers alone may not resolve all of Washington’s objections.
The immediate business issue is uncertainty. Companies making production, pricing and sourcing decisions for 2027 now face the prospect that goods previously qualifying for AGOA treatment will no longer receive that preference.
The commercial impact will depend on the products involved, their existing tariff treatment and whether other exemptions or preferences apply.
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