FRESH AGOA HURDLE FOR SOUTH AFRICA AS US IMPOSES RESTRICTIONS

South Africa faces a fresh hurdle in the African Growth and Opportunities Act (Agoa) after United States President Barack Obama officially suspended its trade benefits under the deal.

The US leader Obama has given South Africa until March 15 to fully comply with imports from the US of poultry as well as other meat products.

Head of the South African Poultry Association Kevin Lovell claimed that the US government was demanding that South Africa weaken its animal health standards.

While it remains unclear if there are any other sticking points to the agreement, US Trade Representative Michael Froman last week warned there were more hurdles for South Africa.

He said the true test of the agreement’s success will be based on the ability of South African consumers to buy American products in local stores.

Last week, South Africa’s Trade minister, Rob Davies, announced that they had reached an understanding with the US government after long negotiations.

Promoting compliance
However, on Monday, President Obama set a new deadline for the suspension of duty-free treatment to all AGOA-eligible goods in the agricultural sector from South Africa.

The suspension will be revoked should South Africa comply with the requirements to ensure the imports are on South African shelves.

“I have determined that South Africa is not meeting the requirements described in section 506A(a)(1) of the 1974 Act and that suspending the application of duty-free treatment to certain goods would be more effective in promoting compliance by South Africa with such requirements than terminating the designation of South Africa as a beneficiary sub-Saharan African country,” President Obama said in a statement.

Following last week’s short-lived ‘breakthrough’, the South African Poultry Association said orders for imports have already been placed.
The association said the first orders are expected to arrive in South Africa within the next month.

The Agoa Act, renewed by US lawmakers in June, eliminates import levies on more than 7,000 products ranging from textiles to manufactured items and benefits 39 sub-Saharan African nations.

Africa Review