AGOA: Obama sends ‘clear message’ to South Africa
The United States moved to suspend trade benefits for South African farm products on Thursday, escalating a drawn-out dispute over US chicken and meat exports.
US President Barack Obama said he planned to revoke duty-free status for South African agricultural goods in 60 days under a programme set up to help African exporters.
“I am taking this step because South Africa continues to impose several longstanding barriers to US trade, including barriers affecting certain US agricultural exports,” he said in a letter to Congress.
US Trade Representative Michael Froman said South Africa could still avoid the suspension, which could cost it up to $7 million in lost benefits, if it met benchmarks to eliminate barriers to US poultry, pork, and beef.
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 country missed an October 15 deadline to agree on new animal health and food safety rules, which also affect US beef and pork exports, prompting the United States to warn that its eligibility for the African Growth and Opportunity Act (AGOA) trade programme was at risk.
Eliminating barriers to US trade and investment is one of the criteria for membership of AGOA, which was renewed earlier this year and provides duty-free access to goods from sub-Saharan African countries, ranging from crude oil to clothing.
“We do not take this decision lightly, and, in fact, have been working hard over many months - indeed years - to help South Africa avoid such action. Unfortunately, the issues persist,” Froman said in a statement.
National Chicken Council President Mike Brown backed the move and said it made no sense for the United States to give special preferences to countries that treated it unfairly.
“This should send a clear message to South Africa and their poultry industry that they will not be given a 'Get out of jail free' card every time AGOA rounds the turn,” he said.
South Africa exported $176 million in agricultural products to the United States under AGOA in 2014 and potential lost benefits are estimated to total $4 million to $7 million.
Products affected would include oranges, wine, macadamia nuts and citrus juice, according to US data.
Read related news articles
Renewed commitment: South Africa to host AGOA summit amid calls for extension
South Africa is set to host the African Growth and Opportunity Act (AGOA) Summit later this year, despite recent diplomatic tensions between the country and the United States (US). In June this year, US legislators called for the relocation of the summit due to controversy surrounding alleged arms shipments to Russia by South Africa. Cleared of any wrongdoing by an internal judicial panel, the US has reaffirmed its commitment to shared growth...
21 September 2023
South Africa confirmed as AGOA host country for 2023
United States Trade Representative Katherine Tai and South African Minister of Trade, Industry and Competition Ebrahim Patel today announced that the Government of South Africa will host the 20th US-sub-Saharan Africa Trade and Economic Cooperation Forum (AGOA Forum) in Johannesburg, from November 2-4, 2023. The Forum will bring together the governments of the United States and AGOA-eligible countries, as well as representatives from key...
20 September 2023
South Africa well positioned as Africa's industrial centre: President Ramaphosa
President Cyril Ramaphosa has told American business representatives that Africa is ready for new investment and strong partnerships. The President was delivering remarks at the US - South Africa Trade and Investment Business Roundtable Dialogue in New York on Monday. “Africa is ready for new investment and strong partnerships. South Africa is well positioned as the continent’s industrial centre, with deep capital markets, the rule...
19 September 2023
US Chamber of Commerce hosts South African president Ramaphosa to deepen bilateral trade, investment ties
The U.S. Chamber of Commerce is organizing a record number of meetings and events on the sidelines of the 78th session of the UN General Assembly (UNGA) to help foster public-private collaboration and underscore the indispensable role of the private sector in realizing the UN’s global targets. As part of this effort, the U.S. Chamber’s U.S.-Africa Business Center (USAfBC) today hosted the U.S.-South Africa Trade and Investment Executive...
18 September 2023
South Africa: Trade high on Ramaphosa’s US agenda
In an effort to extend South Africa’s preferential trade agreement with the US, trade, industry & competition minister Ebrahim Patel is holding high-level meetings with US legislators ahead of the UN General Assembly this week. President Cyril Ramaphosa is understood to have attended some of the meetings, including with senator Gregory Meeks, the foreign affairs committee chair who called on the US to strip SA of the right to...
17 September 2023
South Africa and the US aim to put AGOA storm behind them
The coming AGOA forum, intended to map the way forward for US-SA trade relations, presents an opportunity for SA and the US to move on from the diplomatic storm stemming from perceptions that Pretoria sides with Russia in its war on Ukraine, says a top Washington official. SA-US tension escalated in May after US ambassador to Pretoria Reuben Brigety accused SA of providing arms to Russia in December 2022. The presidency released a...
14 September 2023
Loss of ‘bedrock’ AGOA will hurt South African motor industry, warns new report
Loss of access to US trade benefits through the African Growth and Opportunity Act (Agoa) would hurt not only the SA motor industry but also many more across Africa that depend on it for their future growth, says a new report. Attempts to create a pan-African motor industry and quintuple the size of the continent’s new-vehicle market could be undermined if the SA industry, the strategy’s main driver, is weakened, the report by motor...
02 September 2023
A warming between South Africa and the US on the eve of BRICS summit
On the eve of the 15th BRICS summit, both SA and US diplomatic sources say they believe that relations between the two countries have improved, with the US adding that there has been more engagement in the past six months than in the past decade. The BRICS summit, which starts in Sandton on Wednesday afternoon, will highlight SA's relationship with two of the US's global opponents: Russia, with which it is indirectly at war, and China, with...
22 August 2023
South Africa: $1bn citrus industry highlights importance of inclusion in AGOA
On Friday, the Standing Committee on Finance, Economic Opportunities and Tourism met with key stakeholders in the citrus industry at Market Demand Fruits, Stellenbosch. The meeting focussed on the detrimental impact on citrus exports to the United States should South Africa not be included in the reauthorisation of the African Growth and Opportunity Act (AGOA). These stakeholders included representatives from Summer Citrus South Africa,...
20 August 2023
Rhetoric aside, the US needs South Africa inside the AGOA tent, not outside
The South African government sent a senior ministerial delegation to the US to make its case for keeping South Africa as a beneficiary of its trade preferences under the African Growth and Opportunity Act (AGOA). Most commentators focus on the benefits of Agoa to South Africa, but there are good reasons that it is very much in America’s interests to keep South Africa as a trading partner and within its sphere of influence through Agoa...
27 July 2023
South Africa asks US for early AGOA extension
South Africa has asked the US to consider an early extension to the African Growth and Opportunity Act (Agoa), saying this would provide certainty for investors and encourage them to commit additional investment on the continent. Trade, industry & competition minister Ebrahim Patel said the expeditious renewal trade agreement, which gives SA and other sub-Saharan African countries preferential access to US markets, would be beneficial not...
25 July 2023
