South Africa has until March 15 to fully comply with US meat and poultry imports according to the African Growth Opportunity Act (AGOA) which allows duty free access to USA markets for more than 7,000 products from 39 sub-Saharan African countries.
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The announcement comes after South Africa failed to meet the December 31 deadline set by Obama to finalise negotiations around USA meat imports, failing which he said he would suspend certain duty free tariffs on goods that benefit from the African Growth Opportunity Act (Agoa).
South Africa has been under pressure to open its market on U.S. meat imports for it to continue benefiting under the trade organisation.
In November the US crossed South Africa off the list of southern African countries that enjoy preferential trade terms under the act because it refused to accept deliveries of chicken meat that failed to meet local safety standards.
Mr Mashilo said that Agoa was hypocritical, prohibiting state ownership and subsidies by other countries despite the U.S. subsidising its own farming sector with guaranteed purchases of produce – often then dumped on overseas markets.
The U.S. proclamation reiterated that remark, saying, “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”. “The success of this deal is the result of years of discussions led by our poultry sector and USA trade officials, and we are proud to have also played our part”.
Analysts expect a deal to be struck before the March deadline because Pretoria can not afford the reputational and financial damage a removal from AGOA would have on an already struggling economy.
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“Obama’s proclamation is likely the stick to go with this warning (to lift restrictions) – one we hope local authorities will heed”, said Bart Stemmet with Oxford Economics-owned advisory firm, NKC African Economics, Reuters reported. It is also a good deal for South Africa, as our poultry is healthy, affordable, and of the highest quality, and we are thrilled that it will finally reach the dinner tables of South Africans.
