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Obama’s March 15 Agoa line in sand for South Africa

22nd January 2016

By: Natasha Odendaal

Creamer Media Senior Deputy Editor

  

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South Africa has received a March 15 deadline for ensuring the entry of US poultry into its market, or it would lose some of its duty-free benefits under the African Growth and Opportunity Act (Agoa). However, the Department of Trade and Industry (DTI) believes any suspension of benefits will be avoided, with the first shipment of poultry expected to enter the South African market well ahead of the deadline.

In a Presidential Proclamation issued by the White House on January 11, US President Barack Obama said the application of duty-free treatment for all Agoa-eligible goods in the agricultural sector from South Africa would be suspended effective March 15, adding that restriction was “more effective” than termination in promoting compliance by South Africa.

But US embassy spokesperson Cynthia Harvey stressed that the suspension decision was not immediate, but rather served as a deadline to ensure successful US poultry trade in the African country, with the full Agoa benefits reinstated “at any time” if the US determined that South Africa was meeting the agreed criteria set out by the US Congress to resume trade of the three meats smoothly and expeditiously.

Powerhouse The move followed the resolution early in January of all long-standing disagreements over sanitary and phytosanitary matters involving the importation of the three meats from the Western powerhouse days after South Africa missed the US-stipulated deadline to concede to certain demands for the elimination of barriers to trade.

Addressing the media in Pretoria, Trade and Industry Minister Dr Rob Davies announced that all documents related to Agoa had been signed, with a balance struck between opening up trade and making animal and human health protocols less stringent to avoid any risk and uncertainty.

However, US Trade Representa-tive Michael Froman issued a postagreement statement saying that continued successful partici- pation in Agoa now relied on consumers’ uptake of the imported meats.

US Senators and Senate Chicken Caucus cochairpersons Johnny Isakson and Chris Coons added that the ultimate success would only be achieved when US poultry finally entered the South African market.

The DTI, along with the Department of Agriculture, Forestry and Fisheries, was working closely with the US embassy in South Africa, local importers and US exporters to facilitate the first shipments of US poultry under the agreed 65 000 t/y quota for US bone-in-chicken pieces.

“We are thus confident that the first shipment will arrive in the next few weeks and the US President will consequently revoke the above proclamation,” the DTI said.

Edited by Martin Zhuwakinyu
Creamer Media Magazine Managing Editor

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