Sakeliga requests President Ramaphosa to delay enactment of bills jeopardising GSP and AGOA
28 October 2019
Business organisation Sakeliga today requested President Cyril Ramaphosa to delay enactment of two bills of Parliament potentially jeopardising 40% of South African exports to the United States. The relevant bills are the Copyright Amendment Bill (B13B-2017) and the Performer’s Protection Bill (B24B-2016).
Sakeliga’s letter follows the announcement on Friday by the Office of the United States Trade Representative (USTR) of a review of South Africa’s eligibility for tariff exemptions under the Generalized System of Preferences (GSP). To add to the gravity of the matter, South Africa’s GSP eligibility has implications also for its eligibility for duty free access to the US market under the African Growth and Opportunity Act (AGOA).
Said Piet le Roux, CEO of Sakeliga: “Of the $8 billion worth of exports from South Africa to the USA in 2017, $1,1 billion (14%) benefited from GSP exemptions, and $1,8 billion (23%) benefited from AGOA exemptions. Given that in recent years up to 40% of exports from South Africa to the United States of America benefited from GSP and AGOA tariff exemptions, the importance of careful consideration of the impact of enactment of the bills cannot be overstated.”
(See table and graph included below.)