SA’s Agoa benefits: Obama gets tough
United States President Barack Obama. Picture: Saul Loeb United States President Barack Obama. Picture: Saul Loeb
Johannesburg - South Africa could lose duty-free access for its farming exports to the US by the middle of March if it fails to implement an agreement on meat trade with the world’s biggest market.
The US will suspend South Africa’s preferential access for agricultural products under the African Growth and Opportunity Act from March 15, according to a proclamation issued on Monday by President Barack Obama.
The statement followed a deal announced on January 7 between the two countries on issues related to health standards on US chicken exports to South Africa.
“Suspending the application of duty-free treatment to certain goods would be more effective in promoting compliance by South Africa with such requirements than terminating the designation of South Africa as a beneficiary,” the US said in the proclamation.
South Africa has been under pressure to reach agreement with the US to open its market to American meat in order to retain benefits under the Agoa accord, which favours 39 African nations by eliminating import levies on more than 7 000 products ranging from textiles to manufactured items. To remain beneficiaries, countries are required to cut barriers to US trade and investment, operate a market-based economy, protect workers’ rights and implement economic policies to reduce poverty.
Trade and Industry Minister Rob Davies told reporters on January 7 he expects South Africa to continue participating in Agoa without interruptions after reaching a deal with the US on health standards for meat.
“With the substantive points resolved we are able to move to the final benchmark: Testing the new system to make certain American poultry can be made available on store shelves in South Africa,” a US Trade Representative spokesman told Bloomberg BNA by e-mail. The country will “allow sufficient time for our product to enter South Africa and are making sure with stakeholders in both countries to ensure this happens quickly so South Africa’s Agoa benefits can continue uninterrupted.”
BLOOMBERG