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

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.