Agoa.info - African Growth and Opportunity Act
TRALAC - Trade Law Centre
You are here: Home/News/Article/Poultry row: SA misses key deadline

Poultry row: SA misses key deadline

Poultry row: SA misses key deadline

Bilateral Trade by Sector: United States - South Africa

Value ('1000 dollars) / Year-to-date to June

Published date:
Tuesday, 20 October 2015
Author:
Krista Hughes

The United States vowed on Monday to press ahead with a review that could cut South Africa's access to trade benefits after the country missed a key deadline for resuming US poultry imports.

South Africa has banned US poultry imports since last December after an outbreak of bird flu. The measure came on top of 15 years of punitive import duties on some US chicken products.

The two countries had set an October 15 deadline to agree on new animal health and food safety rules, which also affect US beef and pork exports and are estimated to cost the United States more than $80 million a year.

But a spokesman for the US Trade Representative said South Africa missed the deadline and Washington had no choice but to move on with a review of South Africa's eligibility for trade benefits under the African Growth and Opportunity Act (AGOA).

Eliminating barriers to US trade and investment is one of the criteria for membership of AGOA, which provides duty-free access to goods from sub-Saharan African countries, ranging from crude oil to clothing.

“We have to complete a review of South Africa's compliance and, if it is not meeting the eligibility requirements under AGOA, we must take action,” spokesman Trevor Kincaid said in an emailed statement.

“Accordingly, and taking into account the commitments that remain outstanding, we are proceeding to complete the review and determine the appropriate action in light of the results.”

Cutting access to AGOA could see South Africa lose as much as $1.7 billion of exports a year. There is no set deadline to complete the review.

Senators from the chicken-producing states of Delaware and Georgia said they were disappointed South Africa had failed to follow through on opening its markets after agreeing in June to drop anti-dumping duties on bone-in chicken.

“South Africa must take the necessary steps to resolve outstanding barriers to US poultry immediately if its AGOA benefits are to be preserved,” Democrats Tom Carper and Chris Coons and Republican Johnny Isakson said in a joint statement.

National Chicken Council president Mike Brown urged the administration to take the necessary action to get US chicken back in South African markets as soon as possible.

Many had expected the United States to become one of South Africa's top poultry suppliers after the June agreement, hitting the shares of South African producers such as Astral Foods and Quantum Foods Holdings.

Read related news articles

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

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

You are here: Home/News/Article/Poultry row: SA misses key deadline