US food producers lobby against AGOA
South Africa's exports to the United States YTD to SEPTEMBER 2013
Unit: $ million, Customs Value
Major food and agricultural associations in the US have united to lobby against the extension of the Africa Growth and Opportunity Act (Agoa) if South Africa and other African countries continue to impose "protectionist" and "antidumping" measures against US exports.
The associations, which have hundreds of thousands of members across the US, have joined forces in sending a letter to Congress members to register their "strong opposition to a long-term or permanent extension" of Agoa without simultaneously addressing their problems over the barriers to trade put up by South Africa and other African countries.
Trade and Industry Minister Rob Davies and US businesses based in South Africa have been lobbying members of Congress to support the extension of Agoa, which expires in 2015.
Agoa provides tariff-free access for African products into the US market and has been instrumental in South Africa’s agricultural exports to the US reaching record levels this year.
The US ambassador to South Africa, Patrick H Gaspard, commented on the letter this week, saying it highlighted what President Barack Obama had said during his visit to South Africa in June, namely that "AGOA (renewal) must address serious concerns of equal access to South African markets".
Removing agricultural trade barriers is necessary, but not sufficient, he said.
"We need to engage the South African government to ensure Agoa renewal is a win-win situation for both countries," Mr Gaspard said.
In their letter, the associations express their concern that a long-term extension of Agoa or making it permanent would remove any incentive for beneficiary nations to move towards reciprocal trade relationships with the US.
But the deputy director-general for international trade and economic development, Xavier Carim, said the foundation of Agoa was its non-reciprocal, developmental nature. There were other mechanisms for dealing with bilateral trade frictions as highlighted by the US lobby group, such as the Trade Investment Framework Agreement, he said.
The associations said they did not believe "that Agoa recipient nations should be rewarded for maintaining barriers to US exports that go beyond those permitted in trade agreements. US producers and exporters are unfairly losing export sales and costing the US jobs."
They said that a reciprocal free trade agreement should be considered for South Africa rather than including it in Agoa, "given the fact that it has a reciprocal preferential trade agreement in place with the European Union and the European Free Trade Area, among others".
They accuse South Africa of having imposed punitive antidumping duties on US frozen bone-in chicken pieces for the past 12 years, allowing other countries such as Brazil to gain market share. The duties have been extended until 2017. Before the duties, South Africa imported about $10m-$24m worth of chicken meat from the US annually.
They also objected to the "harsh import restrictions" imposed on US pork for health reasons.
They said South Africa had forced the US to use a highly onerous generic export certificate, which in effect banned US pork imports.
Read related news articles
New government of national unity gives South Africa a honeymoon period for keeping its AGOA status, say analysts
New Trade and Industry Minister Parks Tau is fighting for South Africa's continued participation in AGOA at the AGOA Forum in Washington this week. The formation of the Government of National Unity (GNU) has secured South Africa a “honeymoon period” for retaining its privileged access to US markets under the African Growth and Opportunity Act (Agoa). This is the view of US politicians and South African trade analysts on the eve of the...
23 July 2024
South Africa plans US mission to lobby against US review of ties
South Africa’s newly formed government will use an upcoming forum on US preferential trade access to push back against a Senate review of ties between the two countries. The House of Representatives last month passed a law requiring a full assessment off bilateral relations and submitted it to the Senate for approval. South African business lobby groups have warned the legislation threatens to curb trade with the world’s biggest economy...
15 July 2024
How access to US market changed the fortunes of two South African sisters
Two entrepreneurs take traditional African designs and sustainable materials and turn them into international success What started as a pastime desire to sell crafts at local markets, deeply rooted in the South African culture, has since blossomed to become an international business entity for two local women.It took the Mokone sisters, Morongwe "Mo" (37) and Michelle (34), three years only to turn around their home decor business into an...
01 July 2024
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