AGOA extension ‘aims to develop ties’
The extension of the African Growth and Opportunity Act (Agoa) by 10 years would allow for the development of a mature trade relationship between sub-Saharan countries and the US, ambassador Patrick Gaspard said on Monday.
Agoa, which was first enacted in 2000, has previously been extended in five-year tranches. It allows 39 African nations access to the US market by eliminating import levies on 7,000 products. SA risked losing the preferential access after a dispute with the US over the latter’s meat exports.
Speaking on the sidelines of a function to celebrate the return of US meat products to SA, Mr Gaspard said the extension of Agoa by 10 years was aimed at giving time and space for a "more dynamic" trade relationship. The US was hoping to leverage its strengths in information technology and renewable energy as it broadened its trade with SA, he said. This could include investments in SA infrastructure such as ports, and in general getting SA’s goods to market.
"If you look carefully at the legislation, Congress has been absolutely clear that this unprecedented 10-year ramp that they have given to Agoa this time must be used as an opportunity to transition and mature our relationships with sub-Saharan Africa beyond this one-way benefit," Mr Gaspard said.
SA itself was facing increased competition from other African states for investment, he said. "It is incumbent on SA policy makers to do all that they can to create the most favourable environment."
In November last year, US President Barack Obama gave SA a three-month ultimatum to open its market to US chicken‚ beef and pork, or lose duty-free access to the US market for its agricultural products. Access of US poultry to SA — stymied since 2000 by tariffs and health restrictions — was seen as the primary issue.
USA Poultry and Egg and Export Council president Jim Sumner said imports of US chicken would not affect the domestic industry and would give consumers additional options. "Angola is our fourth-largest export market, we are also looking at Benin and the Congo. That is why it is so appreciated to try and get back into the SA market which was a growing market for us prior to 17 years ago."