JOHANNESBURG — U.S. President Donald Trump will cut South Africa and Rwanda from a quarter-century-old Africa trade agreement at the end of the year as punishment for not meeting certain criteria, including policies on trade barriers and alignment with U.S. foreign policy, the Office of the U.S. Trade Representative said Monday.
In South Africa’s case, it’s another sanction against Africa’s biggest economy by the Trump administration. Last week, the U.S. excluded South Africa from a meeting of foreign ministers from the Group of 20 countries in Atlanta.
The trade deal under the African Growth and Opportunity Act, or AGOA, was introduced by former U.S. President Bill Clinton in 2000 to give some African nations duty-free access to the American market for some of their goods.
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Countries have to meet requirements to be members, like establishing a market-based economy, the rule of law, political pluralism and the right to due process while also eliminating barriers to U.S. trade and investment. Countries’ memberships are reviewed each year. More than 30 African nations are currently members of AGOA and view duty-free access to the U.S. market for some of their exports as a crucial economic boost.
The suspensions take effect on Jan. 1, 2027
U.S. Trade Representative Jamieson Greer said in a statement that Trump had informed Congress and the governments of South Africa and Rwanda that they would be removed from AGOA from Jan. 1 next year.
PHOTOS: Trump administration will cut South Africa and Rwanda from the AGOA trade program
Greer said that the two countries were removed because of policies that “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 statement did not give any specific examples of trade barriers or security and foreign policy issues.
U.S.-South Africa relations have plummeted during Trump’s second term, with his administration accusing South Africa’s Black-led government of being anti-white over some of its domestic affirmative action policies, and anti-American for its criticism of Israel and diplomatic ties with Iran.
The U.S. last week sanctioned Rwanda’s defense ministry over its support of the M23 rebel group fighting government forces in mineral-rich eastern Congo.
There was no immediate reaction from the South African or Rwandan governments, though South African officials said last week they were expecting to be removed from the program.
Several countries have previously been removed from AGOA
The U.S. under former President Joe Biden cut several nations from AGOA for failing to meet democratic or human rights standards. They included Burkina Faso, Gabon and Niger for coups that overthrew their governments, and Uganda for introducing a strict anti-gay law.
Countries can be reinstated to AGOA and Greer said of South Africa and Rwanda that “the Trump administration is working to ensure our African partners take the necessary steps to meet the eligibility criteria.”
Trump has pushed for policy changes in South Africa
The Trump administration has been fiercely critical of South Africa and has baselessly accused its government of allowing widespread violence against minority white farmers. It has also said that South Africa’s affirmative action laws that promote Black business ownership are a barrier to U.S. investment.
The U.S. has pressed South Africa to enact specific policy changes, including making crime against farmers a priority crime, dropping affirmative action requirements for U.S. businesses operating in the country, and repealing a land law that allows for the expropriation of private land without compensation in some circumstances.
The South African government has denied it is anti-white and has said the U.S. criticism is a result of misinformation. South African Foreign Minister Ronald Lamola said last month that the country was preparing for the “worst-case scenario” on AGOA but would not “surrender its sovereignty” to U.S. demands.
U.S. Ambassador to South Africa L. Brent Bozell III said in a post on X on Monday that the AGOA suspension was because of South Africa’s failure to enact those policy changes.
“This was a predictable and preventable outcome resulting from the rejection by South Africa’s government of real concerns raised by the U.S. Government,” the ambassador wrote.
U.S. Rep. Richard Neal, the top Democrat on the House Ways and Means Committee, said in a statement that the administration’s move against South Africa, the top exporter to the U.S. in the program, could cause chaos to the U.S. economy and that the administration needs to give a clear explanation of how South Africa can be reinstated.
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Imray reported from Cape Town, South Africa.
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