Washington excludes South Africa and Rwanda from US duty-free trade deal

FMM - F24 Video Clips
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Nov 4, 2026
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Initially signed in the year 2000,
the African Growth and Opportunity Act, or AGOA,
granted thousands of African products
duty-free access to the U.S. market.
The deal was extended in 2015 and again in 2026,
but this time two countries, South Africa and Rwanda,
have been excluded from the program.
The U.S. cited concerning practices,
including barriers to American investment
and threats to national security, to justify the decision.
A worrying yet largely expected outcome
for South African authorities amid continued
strained diplomatic relations with Washington.
It is disappointing to learn
that South Africa has been excluded from AGOA.
But I think we all know that this is not outside of the expectations.
For some time, many South Africans have
been thinking that this day would come.
South Africa has been the largest beneficiary of AGOA,
which covers around 10% of its exports to the US
and just under 1% of the country's total exports.
Unions have warned exclusion from the program
could directly impact tens of thousands of jobs,
especially in the agriculture, manufacturing and automobile sectors.
But several economists have downplayed the decision's impact,
pointing out South African products
could still be sold on the U.S. market
and benefit from preferential tariffs.
Others, meanwhile, urged Pretoria to use
this opportunity to diversify its trade
and look for new partners.
South Africa's potential trade with China and India is far,
far greater, and the opportunities
are far greater than the losses that might
be incurred from a deterioration in its trade
relations with the United States.
Trade unions are now urging South African authorities
to use a 60-day notice period
to try to salvage the deal.
Analysts, however, say Pretoria's exclusion from AGOA
was a political rather than an economic decision
and that trying to negotiate
with Washington would amount to a waste of time.
