US Removes South Africa and Rwanda From Preferential Trade Program

The United States government has notified Congress of its intent to remove South Africa and Rwanda from the African Growth and Opportunity Act. The measure is scheduled to begin on January 1, 2027. The program allows eligible nations to export thousands of products to the American market without customs duties.

The United States Trade Representative stated that an annual review identified practices inconsistent with eligibility requirements. The American government pointed to barriers regarding trade and foreign investment. Concerns related to national security and foreign policy interests in the region were also cited.

Regarding Rwanda, the American government highlighted issues related to human rights and political pluralism. The decision comes just days after the United States Treasury imposed sanctions on the Rwandan Ministry of Defense. The American agency accused the country of supporting rebel groups in the Democratic Republic of the Congo.

South African authorities described the exclusion as a regrettable development. The local trade minister declared that the country will seek to diversify its export markets to preserve jobs. American diplomatic representatives stated that the outcome stems from a lack of alignment with the requirements established by the program.