Minister Rob Davies on African Growth And Opportunity Act
6 November 2015
In a letter dated 5th of November 2015, President Obama, warned South Africa that if the negotiations on the outstanding issues related to the poultry SPS issues are not resolved by the 31st December then the US would suspend South Africa’s Duty Free Treatment of SA’s Agricultural goods into the US.
South Africa’s negotiators have been well aware of this authority to suspend a country’s trade benefits in terms of the AGOA Extension and Enhancement Act where the US believes that a beneficiary of AGOA is “not making continual progress toward the elimination of barriers to United States trade and investment”.
However, South Africa wishes to submit that it has been making continual progress during the past few months to implement the agreement reached in Paris on the 6th and 7th of June this year. The main issues to be resolved are the opening of the South African market to US exports of the three meats: poultry, beef and pork.
At the Paris meeting South Africa agreed to open the South African market to the US for 65 000 tons of bone-in chicken pieces through a rebate facility. In this regard the International Trade and Administration Commission has already issued a draft regulation on the 30th of October, 2015. The process of creating this quota is envisaged to be concluded well before the 31st of December 2015.