The USTR's office said Burkina Faso had failed to meet the requirements of the AGOA statute and would be given "clear benchmarks" for a pathway toward reinstatement to the trade program, adding that Washington would work with the Burkinabe government.
The U.S. African Growth and Opportunity Act (AGOA) provides sub-Saharan African nations with duty-free access to the United States if they meet certain eligibility requirements, such as eliminating barriers to U.S. trade and investment and making progress toward political pluralism.
The junta's foreign affairs ministry reacted to the U.S. decision on Monday by repeating a November statement saying that the timetable for a return to democracy had not changed.
Burkina Faso had committed to return to constitutional rule in 24 months in a July agreement with West African regional bloc ECOWAS.
Just before Christmas, Burkina Faso's military government ordered a senior United Nations official to leave the country, a decision that was contested by the U.N..
Although the government did not give a reason at the time, its foreign minister later accused the official, Barbara Manzi, of painting a negative picture of the security situation in the country.
Burkina Faso is one of the world's poorest countries. Militants linked to al Qaeda and Islamic State have killed thousands of civilians there, creating one of Africa's fastest-growing humanitarian crises.