US to exclude South Africa and Rwanda from AGOA trade preferences
Washington cites practices inconsistent with eligibility criteria. Pretoria says it is already pursuing other markets.
The United States will exclude South Africa and Rwanda from the African Growth and Opportunity Act (AGOA) with effect from 1 January, the US Trade Representative, Jamieson Greer, announced on Monday.
Mr Greer said both countries had engaged in practices inconsistent with the programme's eligibility criteria, which "include, but are not limited to, barriers that undermine American trade".
AGOA grants eligible sub-Saharan African countries preferential access to the American market. The programme has been renewed until the end of 2028, but each country's eligibility is reviewed annually by the President. Removal requires 60 days' notice to Congress and to the country concerned.
South Africa is the largest beneficiary of the scheme. Relations between Pretoria and Washington have been strained by American claims of discrimination against white Afrikaners, which the South African government rejects. President Cyril Ramaphosa had warned the nation to prepare for an adverse decision, and the Minister of Trade, Parks Tau, said the economy would remain stable and that South Africa was diversifying its markets.
In Rwanda's case, the decision follows American sanctions imposed last week on the country's defence ministry over alleged links to the M23 rebel group in eastern Democratic Republic of Congo, which Kigali denies. Foreign Minister Olivier Nduhungirehe said Rwanda "must not be held as a scapegoat for what is happening in Congo forever".