South Africa's agri business chamber meets with USDA on AGOA
The U.S. Department of Agriculture’s (USDA) regional Minister Counselor for Agricultural Affairs in Pretoria, Eric Wenberg, briefed Agbiz and members on the status of bilateral negotiations on U.S. market access and the ongoing review of South Africa’s future participation in the African Growth and Opportunity Act (AGOA) this week.
Congress mandated an “out of cycle” review for South Africa that is currently being conducted by the U.S. administration. Wenberg explained that the new AGOA legislation changed the way the Administration uses AGOA by giving the United States the flexibility to reduce or eliminate tariff access for specific products for AGOA countries, if needed. The legislation no longer requires a simple all-or-nothing annual renewal. The out of cycle review for South Africa was part of the new law.
The United States will conclude its review by the end of September and announce the results soon after. From the U.S. point of view, progress on the U.S. market access requests for poultry, pork, and beef, is when trade resumes. He characterized the situation that with South Africa, negotiations have proceeded past “no” but have not yet gotten to “yes”.
The South Africa and United States agreed on a level of poultry access in Paris on June 4 and 5; South Africa has yet to begin to implement that quota. After exchanging several drafts, the United States sent back its position on the quota to South Africa on the 8th of September and awaits a final deal. Wenberg said that the agreement needs to be on the principles agreed to in Paris and that the U.S. industry was concerned about the long delay in South Africa’s agreement to implement the quota. There are currently negotiations with DAFF on sanitary measures regarding beef, pork, and poultry.
While those negotiations have advanced, they have not concluded. The next round of negotiations will be held on the 14th of September in Pretoria, and marks the fourth engagement since June. The biggest current sticking point is the U.S. request that South Africa regionalize the United States over the question of its highly pathogenic avian influenza outbreak. Wenberg explained the several levels of assurance that the United States Government was providing to ensure that all U.S. poultry offered to South Africa is completely safe. The United States currently exports poultry to over 100 countries without restrictions for HPAI, and to another 38 countries with some form of restriction where those nations accept U.S. regionalization protocols. Wenberg emphasized that South Africa and the United States have more to gain by collaboration than competition. Wenberg presented USDA’s analysis that indicates South Africa could gain $175 million in new exports to the United States for citrus, avocados, lamb, beef and other products.
The USA is prepared to help South Africa with its poultry development and building new business. Members of other U.S. industries, such as its pork industry, are ready to travel to South Africa to help train South African industry about how to meet U.S. guidelines for food imports. Wenberg reported USDA’s disappointment that when its Deputy Secretary Krysta Harden visited Cape Town August 13-15, the U.S. embassy was unable to secure a bilateral meeting for Harden with DAFF Minister Zokwana or Deputy Minister Cele.
Harden last visited South Africa two years ago. Harden was in South Africa to address the Produce Marketing Association conference and reviewed USDA preclearance procedures that assist SA citrus exports to the United States. Wenberg said, “The U.S. goal is to raise consumption worldwide for agricultural products, and where it exports does that with cooperation from local industry.” “Trade grows jobs” he said, “the USA is largest agricultural importer and ready for more SA products, but wants the US market access questions resolved”. Agbiz raised the issue of rather replacing the unilateral trade access concession, which is AGOA, with a negotiated bilateral Free Trade Agreement, and this was strongly supported by the USDA.
Read related news articles
South Africa walks a tightrope on US relations
South Africa has been conducting a high-wire act in its relations with the United States (US). It is maintaining friendships with Washington’s enemies like Russia, Iran and China while trying to avoid disrupting its economic relations with America. Tensions came closer than ever to breaking point this month as the US House of Representatives’ Committee on Foreign Affairs passed the US-South Africa Bilateral Relations...
28 March 2024
Remarks by Deputy Treasury Secretary Adeyemo on the US-South Africa economic relationship
As Prepared for Delivery in Johannesburg, South Africa Thank you for the warm welcome. I want to express my gratitude to Consul General Spera and the American Chamber of Commerce for hosting me. I am honored to be joined today by South African Entrepreneurs that are building companies to unlock the economic potential of their country. I owe my own presence here today to the inspiration I drew from South Africa. In the middle of the...
13 March 2024
South African president Ramaphosa meets with US congressional delegation
South African President Cyril Ramaphosa today, 21 February 2024, received for a visit from a bipartisan congressional delegation from the United States of America, in Tuynhuys, Cape Town. The delegation is visiting South Africa at the invitation of the Aspen Institute. The President and the US congressional delegation discussed the importance of the relationship between South Africa and the US, which manifests in strong economic,...
21 February 2024
US congress receives Bill to review South Africa relations
A bill has been submitted to the United States congress calling for a full review of the country’s bilateral relationship with South Africa following the International Court of Justice ruling that found it plausible that Israel has committed acts of genocide against Gaza. The bipartisan bill which was introduced by US Republican congressman John James and Democratic Party congressman Jared Moskowitz this week could threaten South...
09 February 2024
Fitch research unit expects better AGOA deal for South Africa
Fitch’s research arm, BMI, believes SA has done enough to get improved trade terms under the African Growth & Opportunity Act (Agoa), which it expects to be extended and modified before its expiry in September 2025. But it warns that the deal might be stillborn if Donald Trump is elected US president. The research think-tank said in a note it assigns a 65% probability that Agoa will not only be renewed but modified to the benefit of...
09 January 2024
South Africa: BLSA CEO calls for more companies to leverage AGOA opportunities
Many more South African companies could benefit from the African Growth and Opportunity Act (AGOA), which gives eligible countries access to US markets free of tariff barriers, business organisation BusinessLeadership South Africa (BLSA) CEO Busi Mavuso writes in her weekly newsletter. Apart from mainstream formal sector businesses, there are opportunities to enable more entrepreneurs, including women-led...
20 November 2023
US ambassador: AGOA is an opportunity to deepen ties between the US and South Africa
President Joe Biden last December at the US-Africa Leaders Summit affirmed that the US will elevate its relationship with Africa. The future is Africa. One example is its youthful population: the median age on the continent is 19. By 2050, one in four people in the world will be in Africa. The US wants them to be healthy and wealthy. What happens in Africa will affect the rest of the globe — and we want to work together to ensure it is...
09 November 2023
US Senator Chris Coons proposes AGOA extension by 16 years, immediate review of SA’s AGOA eligibility
Powerful US Democratic Party Senator Chris Coons is circulating a discussion draft of a Bill to renew the African Growth and Opportunity Act (Agoa) for 16 years that would also require an immediate “out-of-cycle” review of South Africa’s eligibility for Agoa. That could lead to South Africa being removed next year from the programme, which has provided considerable benefits to SA exporters to the US of cars, fruits and wine, in...
07 November 2023
AGOA benefits extend beyond trade [incl. VIDEO of Friday's opening session]
Economies in Sub-Saharan countries stand to benefit far more from the African Growth and Opportunity Act (AGOA) than notable trade statistics, says President Cyril Ramaphosa. “AGOA enhances the diversification of African economies, enabling them to export value-added products. By enabling African countries to have preferential access to the US market, this opportunity incentivises African countries to develop and export value-added goods...
06 November 2023
South Africa pins its hopes on an early 2024 US Congress renewal of AGOA
South Africa’s government is hoping that the process to renew the African Growth and Opportunity Act (Agoa) by the US Congress will be concluded by early 2024, ensuring that more than 20 African countries continue to have duty-free access to the world’s largest economy. This is the first time that the South African government has given a timeline for when it hopes the US Congress might extend Agoa, which has been renewed twice...
05 November 2023
SA trade minister Patel expresses confidence at media briefing about South Africa’s continued inclusion in AGOA
Ahead of South Africa hosting the US-AfricaTrade and Economic Cooperation Forum – also called the AGOA Forum – from November 2 to 4, Trade, Industry and Competition Minister Ebrahim Patel on October 26 briefed the media on the state of readiness for the forum, expressing confidence that the South African government’s relations with the US were strong. Various South African stakeholders have been motivating for...
26 October 2023