The US trade representative said on Monday that Washington would exclude SA 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, he 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.
SA is the programme'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. SA has repeatedly rejected the accusations.
On Thursday, trade, industry and competition minister Parks Tau said the country hoped for a favourable decision from Washington on Agoa, arguing that continued market access would be in the best interest of both countries.
A little over a week earlier, however, 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.
Tau said in Johannesburg last week that regardless of President Donald Trump's decision on Agoa, SA's economy would remain stable as it seeks other international markets.
Washington has been increasing economic pressure on Rwanda over its alleged backing of the M23 rebel group in neighbouring Democratic Republic of Congo (DRC).
Last week, the US sanctioned the Rwandan defence 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 said 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," Olivier Nduhungirehe said 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." — AFP