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Trump to remove Rwanda and South Africa from US trade deal

Trump to remove Rwanda and South Africa from US trade deal
✦AI Summary

The Trump administration has announced plans to remove South Africa and Rwanda from the African Growth and Opportunity Act (AGOA) starting in 2027. Officials cited concerns over trade barriers, national security, and corruption as primary reasons for the decision.

Why it matters

This move significantly impacts trade relations between the US and key African nations, potentially disrupting regional economies and diplomatic ties.

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US President Donald Trump has notified Congress of his intention to remove South Africa and Rwanda from a preferential trade programme, from 1 January 2027.

The African Growth and Opportunity Act (Agoa) allows eligible African countries to export thousands of products to the US duty-free.

US Trade Representative Jamieson Greer said in a statement that an annual review had found that both countries were engaging in practices inconsistent with the programme's eligibility requirements.

He added that the Trump administration had additionally notified the two countries of the decision.

The Trump administration cited barriers to US trade and investment, as well as concerns over national security and foreign policy interests in the region.

For South Africa, the US pointed to corruption.

"The Trump administration is working to ensure our African partners take the necessary steps to meet the eligibility criteria," Greer said.

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