US to exclude South Africa and Rwanda from Agoa duty-free deal

The United States trade representative on Monday said Washington would exclude South Africa and Rwanda from a major Africa-US duty-free trade deal, a blow to both economies, over practices “inconsistent” with the deal’s eligibility criteria.

“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,” Jamieson Greer said in a statement.

The exclusions will take effect from January 1, the statement said.

The African Growth and Opportunity Act (Agoa), which grants eligible sub-Saharan African countries preferential access to the US market, has been renewed until the end of 2028, but is reviewed annually.

South Africa is the program’s largest beneficiary but its eligibility has come under scrutiny as Washington steps up criticism of Pretoria, including false allegations of discrimination against white Afrikaners that South Africa rejects.

The Citrus Growers’ Association of Southern Africa (CGA) called the exclusion “a serious blow” to the industry, warning that jobs and the economies of entire towns were at stake.

South Africa is the world’s second-largest citrus exporter after Spain, and citrus is its largest agricultural export sector by value.

Growers cannot easily redirect fruit to alternative markets because importing countries have different phytosanitary requirements and consumer preferences, said Gerrit van der Merwe, the association’s chairman.

“That entire value chain, on both sides of the Atlantic, is now under threat,” CGA said in a statement.

On Thursday, South Africa’s trade minister said the country hoped for a favorable decision from Washington on the issue, arguing that continued market access would be in the best interest of both countries.

A little over a week earlier, however, South African President Cyril Ramaphosa said the country should “prepare” for an adverse decision.

The US president reviews countries’ eligibility for Agoa annually.

Any removal requires 60 days’ notice to Congress and the country concerned.

South African Trade Minister Parks Tau told reporters in Johannesburg last week that regardless of Trump’s decision on Agoa, his country’s economy would remain stable as it seeks other international markets.

Increasing pressure on Rwanda

Washington has been increasing economic pressure on Rwanda over its alleged backing of the armed M23 rebel group in neighbouring Democratic Republic of Congo.

Last week, the United States sanctioned the Rwandan defense ministry over those ties, which the Rwandan government denies.

With Rwandan help, the M23 movement has seized swathes of the eastern DRC, home to valuable minerals coveted by world powers, since it took up arms again in 2021.

Rwanda’s foreign minister told AFP last week that his country should not be a “scapegoat” for events in DR Congo.

“The situation in the DRC, the political situation, the security situation, is mainly a Congolese issue,” Rwandan Foreign Minister Olivier 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.