US to Exclude South Africa, Rwanda from AGOA Trade Deal

The United States has said it will exclude South Africa and Rwanda from a major duty-free trade programme with African countries, citing practices it considers inconsistent with the deal’s eligibility requirements.

US Trade Representative Jamieson Greer announced the decision on Monday, saying the exclusions would take effect on January 1.

“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 US national security and foreign policy interests in the region,” Greer said in a statement.

The African Growth and Opportunity Act (AGOA) provides eligible sub-Saharan African countries with preferential access to the US market. The programme has been renewed until the end of 2028, although participating countries’ eligibility is reviewed annually.

South Africa is AGOA’s largest beneficiary, but its continued participation has come under scrutiny as Washington intensifies criticism of Pretoria.

The US has also made allegations of discrimination against white Afrikaners, which the South African government has rejected.

South Africa’s trade minister, Parks Tau, said last week that the country was hoping for a favourable decision from Washington, arguing that continued access to the US market would benefit both countries.

However, President Cyril Ramaphosa had earlier urged the country to “prepare” for an adverse decision.

Tau told reporters in Johannesburg that South Africa’s economy would remain stable regardless of the US decision, as the country pursues access to other international markets.

Under AGOA, the US president reviews participating countries’ eligibility annually. Any removal requires 60 days’ notice to Congress and the country concerned.

US increases pressure on Rwanda

Washington has also been increasing economic pressure on Rwanda over allegations that it supports the M23 rebel group in the neighbouring Democratic Republic of Congo (DRC).

The Rwandan government denies backing the armed group.

Last week, the United States sanctioned Rwanda’s defence ministry over the alleged links.

M23 has seized large areas of eastern DRC since resuming its insurgency in 2021. The region is rich in valuable minerals and has attracted international interest.

Rwanda’s Foreign Minister, Olivier Nduhungirehe, said last week that his country should not be made a “scapegoat” for the conflict in the DRC.

“The situation in the DRC, the political situation, the security situation, is mainly a Congolese issue,” Nduhungirehe told AFP on the sidelines of a Russia-Africa summit in Moscow, before the US sanctions were imposed.

“Rwanda must not be held as a scapegoat for what is happening in Congo forever,” he added.

The planned exclusions mark a further escalation in Washington’s trade and diplomatic pressure on the two African countries.