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Planning under way for South African summer citrus season

The Western Cape Citrus Producers Forum conducted its annual planning sessions for the summer citrus export program to the United States, with much of the discussion linked to the importance of the African Growth & Opportunity Act. The purpose of the meetings was to share goals, outline the program for the season, identify potential challenges and define solutions prior to the first fruits arriving in the United States. The volume of South African citrus shipped to the U.S. is expected to be similar to 2014. More than 125...

04 May 2015

AGOA no longer a chicken issue

An amendment to renew the African Growth and Opportunity Act (Agoa) is likely to open a flood of complaints by the US Trade Representative (USTR) on a variety of issues and this is likely to limit Africa’s benefits from the trade initiative. The amendment in question is to have the out-of-cycle review for South Africa compulsory rather than optional. The bipartisan amendment sponsored by three senators also would “allow the US Trade Representative to be responsive and flexible in its approach to addressing areas of concern by...

28 April 2015 | Banele Ginindza

Draft US bill provides for 10-year AGOA extension; South Africa eligibility under review

A bipartisan bill to renew the African Growth and Opportunity Act (AGOA) for another decade was introduced in Congress on 16 April, quickly advancing out of the committee levels in both the House and Senate late last week. The current version of AGOA is due to expire on 30 September unless renewal legislation is approved beforehand. The scheme is considered the cornerstone of the US-African economic relationship, providing approximately 6000 products from Sub-Saharan Africa with preferential quota- and duty-free access to the US...

27 April 2015

Poultry state senators turn up heat on South Africa

U.S. senators from poultry states are ramping up pressure on South Africa to stop imposing duties that have effectively blocked U.S. producers from a growing market. The Senate Finance Committee this week passed a 10-year reauthorization of the African Growth and Opportunity Act – a trade agreement between the U.S. and sub-Saharan African countries – with an amendment designed to help open up the South African market to U.S. poultry producers. The amendment by Sen. Johnny Isakson, R-Ga., would require the United States to review South...

24 April 2015 | Nicole Gaudiano

South Africa's AGOA benefits in spotlight after US Senate move

The Obama administration would have to undertake a sweeping review of SA’s eligibility for African Growth and Opportunity Act (AGOA) benefits under an amendment adopted unopposed by the Senate finance committee on Wednesday. However, no similar measure was adopted in the house ways and means committee on Thursday when it unanimously approved Agoa extension legislation in the form it was first introduced last week. Offered by Georgia Republican Senator Johnny Isakson, the Senate amendment was meant to strengthen the hand of the USA...

24 April 2015 | Simon Barber

The White House: Supporting the U.S.-Africa Partnership Through the AGOA Extension and Enhancement Act of 2015

Last week, Congress introduced several bills that are important to the economic future and national security interests of the United States. Central among them is a 10-year extension of the African Growth and Opportunity Act, legislation that has served as the cornerstone of the U.S.-African economic relationship and has dramatically expanded U.S trade with Africa over the past 15 years. In Ghana in 2009, President Obama highlighted the importance of U.S. engagement with Africa when he said, “I do not see the countries and peoples of...

23 April 2015 | Ambassadors Michael Froman and Susan Rice

Zambia to boost AGOA with strategy

Zambia has developed a strategy to help local exporters increase penetration of the United States of America market under the African Growth and Opportunity Act (AGOA). The National Response Strategy which has cost US$100,000 will be implemented to address the difficulties that Zambian companies faced in accessing the US market in the last 15 years of utilising the AGOA. AGOA was signed into law on May 18, 2000 as Title One of the Trade and Development Act of 2000. The Act offered tangible incentives for African countries to continue...

23 April 2015

Rep. Bass hails bipartisan introduction of ‘AGOA Extension and Enhancement Act of 2015’

Congresswoman Karen Bass (D-Calif.), Ranking Member of the House Africa Subcommittee recently applauded the bipartisan introduction of HR 1892, the “AGOA Extension and Enhancement Act of 2015” that will extend the African Growth and Opportunity Act (AGOA) for 10 years. For well over a decade, AGOA has served as the key foundation to U.S.-Africa trade and investment, and the proposal introduced today would build on and improve this successful law. “For far too long the United States has lagged behind China, Brazil and other nations in...

23 April 2015

South Africa's eligibility for AGOA benefits to be reviewed

The Senate finance committee on Wednesday night voted to require the Obama administration to launch a review of SA’s eligibility for trade benefits under the African Growth and Opportunity Act (Agoa) within 30 days of the Act being renewed. Legislation to renew Agoa for 10 years introduced last week by senator Orrin Hatch, the Utah Republican who chairs the committee, had left such a review to the administration’s discretion. On a voice vote, the committee accepted an amendment by senator Jonny Isakson to make the review mandatory. The...

23 April 2015 | Simon Barber

'Namibian beef in US market soon' - official

The US Ambassador to Namibia Thomas Daughton who met President Hage Geingob at State House on Wednesday has vowed to work toward strengthening bilateral relations between the two countries and pave the way for the introduction of Namibian beef in his country. Addressing the media after a closed door meeting, Daughton said he had fruitful discussions with the Namibian leader on issues of common interest, including the energy sector in Namibia. ‘We discussed US programmes and activities in Namibia, including the issue of Namibia exporting...

22 April 2015

South Africa's trade union federation COSATU says "AGOA should remain non-conditional and preference based"

The Congress of South African Trade Unions (COSATU) has noted a huge media interest in the USA’s Africa Growth Opportunity Act (AGOA) and poultry. AGOA is a unilateral preferential agreement in the form of zero tariff exports to the US in favour of eligible African countries and is due to be renewed in September 2015. SA is an eligible country under AGOA. Currently the US poultry imports are subject of antidumping (AD) duties in addition to normal tariffs that apply to all imports except those countries that have trade agreements with SA...

22 April 2015

SA poultry producers in bid to end AGOA logjam

South African poultry producers are making concessions in order to end a dispute with the US over local poultry tariffs and keep the country on track to be included in the renewal of the Africa Growth and Opportunity Act (Agoa). The South African Poultry Association (Sapa) was drafting a letter with “realistic, rational and reasonable proposals”, which if accepted by their US counterparts would form the basis of a new agreement, Sapa chief executive Kevin Lovell said yesterday. This comes after the Minister of Trade and Industry Rob...

21 April 2015 | Banele Ginindza

AGOA renewal: Chicken dispute unlikely to scuttle trade boon

South Africa will continue to have preferential access to the US market under the African Growth and Opportunity Act (Agoa) 10-year extension bill introduced in the US Congress late last week, assuming no major alterations are made between now and whenever President Barack Obama signs it into law. That is the good news. Whether SA’s exporters will get to enjoy Agoa’s benefits for the full decade is another matter. The prospect of SA’s exclusion over the chicken dispute has receded. The new danger is payback for discrimination US...

20 April 2015 | Simon Barber

AGOA: South Africa's real chicken and egg problem

Almost everybody agrees the African Growth and Opportunity Act (AGOA) has had a substantial, positive impact on the South African economy – and a significant impact on a number of other African states as well. Now, however, a game of chicken between poultry producers in the US and SA threatens progress on a new version of AGOA. However, problems in the US Congress over South Africa’s continued participation in a new AGOA may just be part of a larger downward spiral for South Africa’s international reputation. J. Brooks Spector takes a...

20 April 2015 | J. Brooks Spector

AGOA a potential no-go for South Africa?

President Jacob Zuma has claimed the US African Growth and Opportunity Act (Agoa) is “all systems go”, but there is growing uncertainty over its renewal. South Africa’s inclusion in the agreement, which governs duty- free trade between the US and sub-Saharan Africa, is shaky. Chicken freeze New Agoa legislation could include a new eligibility requirement that – to be discussed by the US Congress next week – allows benefits only to countries not discriminating against the US. The US is concerned that it’s facing higher tariffs...

20 April 2015 | Tumisang Ndlovu

AGOA renewal could jeopardise SA-EU trade agreements

Even if the US-SA chicken dispute is resolved, legislation to renew the African Growth and Opportunity Act (Agoa) is likely to include a new eligibility requirement conditioning benefits on countries not discriminating against US products. The implications for SA and its relations with the EU could be serious. The US would in effect be demanding the same access to the South African market as the EU without the give and take of negotiations on a free trade agreement or the US having to make binding commitments in return. This emerged amid...

17 April 2015 | Simon Barber

AGOA bill proposes three-year timeline for SA

A bipartisan bill to renew the African Growth and Opportunity Act (Agoa) for 10 years was on Thursday night jointly introduced by the chairmen of the Senate Finance Committee and the House Ways and Means Committee, presaging speedy passage well ahead of the September 30 deadline. A summary of the bill made no mention of SA but a colloquy in the finance committee between senator Jonny Isakson and US Trade Representative Michael Froman made it clear that SA's continued enjoyment of Agoa benefits was by no means certain. Mr Froman, fresh from...

17 April 2015 | Simon Barber

Ambassador Cynthia Akuetteh - Remarks for the Announcement of dates for the 2015 AGOA Forum

Mr. Minister, Distinguished Guests. I am grateful for the opportunity to be here today, and I want to thank Minister Tchango for the invitation. And thank you to all of you for coming out today.  Your attendance – and your hard work – is a testament to the commitment between the United States and Gabon to deepen our economic partnership and grow our commercial relationship to bring shared prosperity to both of our countries.  I am thrilled that the United States and Gabon will co-host the 2015 African Growth and Opportunity...

16 April 2015 | Official speech

Press Release: AGOA bill puts pressure on South Africa to "stop blocking US poultry exports"

In bicameral introduction, reauthorization bill takes steps to ensure preference program is respected with fair trade; Senators Coons, Isakson announce intention to pursue amendments to further level the playing field for American poultry in South Africa WASHINGTON – Legislation introduced by the chair and ranking member of the Senate Finance Committee and the chair of the House Ways and Means Committee on Thursday, April 16, 2015 to reauthorize the African Growth and Opportunity Act (AGOA) takes strong steps aimed at preventing countries...

16 April 2015

Press release: Senate, House leaders introduce bipartisan bill to support American manufacturers, strengthen trade ties

Today, the leaders of the U.S. Senate Finance and House Ways and Means Committees announced bipartisan, bicameral legislation to help advance America’s trade priorities and better facilitate U.S. trade with developing countries. The AGOA Extension and Enhancement Act of 2015 introduced by Committee Chairman Orrin Hatch (R-Utah) and Ranking Member Ron Wyden (R-Ore.) along with House Ways and Means Committee Chairman Paul Ryan (R-Wis.) and Ranking Member Sander Levin (D-Mich.), would renew both the African Growth and Opportunity Act...

16 April 2015 | Brendan Buck

Rep. Paul Ryan helps introduce bipartisan bill to extend AGOA

The U.S. Senate Finance Committee and the House Ways and Means Committee announced legislation Thursday designed to augment U.S. trade relationships with developing countries, according to a press release. The bill - The AGOA Extension and Enhancement Act of 2015 - would renew both the African Growth and Opportunity Act (AGOA) and the Generalized System of Preferences (GSP) in addition to enhancing trade benefits for Haiti. Central to the bill – introduced by Senate Finance Committee Chairman Orrin Hatch, R-Utah, and Ranking...

16 April 2015 | Alex Garofalo

South Africa: SA delegation in US for AGOA talks

Trade and Industry Minister Rob Davies has arrived in Washington to advocate for the renewal of the African Growth and Opportunity Act (AGOA) and the Trade and Investment Framework Agreement (TIFA) with South Africa as a beneficiary country. Minister Davies joins a delegation of senior government officials, business and labour - led by Special Envoy on AGOA Faizel Ismael - which has been in the US since the weekend. The Minister and his delegation will be meeting with the United States Trade Representative (USTR) regarding AGOA, which...

15 April 2015

Level playing fields and no bullying are needed

There have been various opinions and views in the media regarding the current process of the review and proposed renewal of the African Growth and Opportunities Act (Agoa). We believe that many misconceptions have been created in the minds of the public and as the largest poultry producer in South Africa and a major employer in the country, we would like to clarify the actual position to dispel some of these misconceptions. We note the following: - Agoa is important and we support its renewal. It is, however, a unilateral trade agreement...

13 April 2015 | Miles Dally

Should AGOA be expanded to include [more] agricultural products?

Too many exports from too few countries in Africa to the U.S. are energy-related, says Udunopa B. Abalu, a graduate student and research assistant at George Washington University in the U.S. The U.S. Congress should revise and renew the African Growth and Opportunity Act (AGOA) before it expires on Sept. 30, extending preferential market access to sub-Saharan Africa’s agricultural products—the backbone of the region, Abalu says. A student of international trade and investment policy, Abalu focuses her research on...

12 April 2015

Dumping duty a bone in AGOA’s chicken pie

It's been 15 years, but there’s still no clarity on when chickens from the US will be able to cross the road to South Africa. The delay now threatens to cost this country dearly as the deadline swiftly approaches for the US to decide whether to renew the African Growth and Opportunity Act (Agoa), which has given South Africa and other nations on the continent unfettered access to the massive US market. At the centre of the Agoa debate lies the issue of South Africa’s “antidumping” duty on imports of US chicken, which has rubbed...

12 April 2015 | BIANCA CAPAZORIO

Setting the record straight on AGOA renewal for SA - US Ambassador Gaspard

Media stories in the South African press have published a wide variety of opinions on the on-going discussions concerning the renewal of the African Growth and Opportunity Act (Agoa) as it relates to South Africa. I wish to clarify some erroneous views that have recently been published in the South African media:   - “The US is holding South Africa hostage on Agoa renewal” - Absolutely not. The US has made clear our consistent position that we want Agoa seamlessly renewed, and that we want South Africa included. Both the...

10 April 2015 | Patrick Gaspard

Davies optimistic SA, US poultry producers will reach agreement

Trade and Industry Minister Rob Davies is optimistic that the current deadlock in the negotiations between South African and American poultry producers about the latter being granted greater access to the local market will be overcome. A resolution to the impasse is vital to get the full backing of the US Congress for SA’s inclusion in the renewal of the African Growth and Opportunity Act (Agoa), a system of nonreciprocal preferences which provides duty-free access to a range of products from sub-Saharan countries into the US. The act...

10 April 2015 | Linda Endsor

SA must hold the line on AGOA - Pan-African Business Forum

South Africa’s continuing spat with the US over its poultry exports has galvanised a group of leading African business people, entrepreneurs and key influencers to call on Pretoria not to give into Washington’s demands that South Africa grant duty-free access to US poultry. They argue that to do otherwise will harm Africa’s interests. The call by the Pan-African Business Forum (PABF) comes as Pretoria scrambles to hammer out a deal that will ensure South Africa’s continued participation in a key US-Africa preferential trade scheme...

08 April 2015 | Ellis Mnyandu

US national security tied to Africa's economic empowerment

A new National Security Strategy (NSS) for the United States released in February of 2015 includes many references to trade being vital to U.S. security interests. That is why Congress must renew the African Growth and Opportunity Act (AGOA) without further delay. "The United States is safer and stronger when fewer people face destitution, when our trading partners are flourishing and when societies are free," reads one reference in the NSS. Given this truth, it is incumbent that the U.S. Congress act swiftly to insure that trade...

08 April 2015 | Bernadette Paolo

US raises AGOA issues over SA poultry sales

South African and US poultry producers have so far failed to agree on a mutually acceptable volume of imported US chicken which could enter SA free of antidumping duties. This despite pressure that the parties reach an accord ahead of the renewal of the African Growth and Opportunity Act (Agoa). The US congress has to pass a new act before the current one expires on September 30. Further talks between South African and US government officials on the issue will take place over the next few weeks. US senators John Isakson of Georgia and...

07 April 2015 | Linda Endsor

The African Growth and Opportunity Act, a US trade failure

Too many people read the headlines and skip the actual substance. A headline might say that it's imperative for America to renew the African Growth and Opportunity Act (AGOA). The underlying facts might demonstrate that AGOA has failed and needs to reinvent itself. Brad Pitt actually summed up the results for America's 15-year love affair with AGOA when his Benjamin Button movie character said that "Our lives are defined by opportunities, even the ones we miss." Pitt's comment came from a movie called "The Curious Case of Benjamin Button"...

06 April 2015 | Rick Helfenbein

Chickenomics – who’s the victim in Agoa poultry row?

It has been enlightening to watch the unfolding saga of the renewal of the African Growth and Opportunity Act (Agoa) negotiations over the past few months. When reviewing what is at stake and considering the major benefits to South Africa Inc; it must be considered: what are the drawbacks? When considering the comments of the South African Poultry Association (Sapa), it appears as if the association is the victim, but delve a little deeper and consider who the real victim is. Sapa has consciously invested into a sector that is dependent on...

02 April 2015 | George Southey
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