Obama takes final step to end Agoa suspension

The arrival of US poultry in South Africa marked the end of a 15-year ban on US chicken imports. (Supplied)
The arrival of US poultry in South Africa marked the end of a 15-year ban on US chicken imports. (Supplied)

Johannesburg - South Africa will retain preferential access for its farming goods to the world’s biggest market after meeting benchmarks set by President Barack Obama to allow the import and sale of US meat products.

“I have determined that suspending the application of duty-free treatment to certain goods is no longer necessary to promote compliance by South Africa with such requirements,” Obama said on Monday in a proclamation.

READ: SA's suspension from Agoa to be lifted - minister

Obama said in January the US would suspend South Africa’s preferential access for agricultural products under the African Growth and Opportunity Act (Agoa) if it failed to implement an agreement with the US on meat trade. The deal included that US bone-in chicken pieces can be sold in South Africa without anti-dumping duties.

South Africa has been under pressure to open its market to American meat in order to retain benefits under Agoa, which favours 39 African nations by eliminating import levies on more than 7 000 products ranging from textiles to manufactured items. The government published regulations in December allowing for an annual quota of 65 000 metric tons of poultry from the US. The first shipment arrived at the port of Durban on February 19, the USA Poultry & Egg Export Council said on February 29.

READ: First US poultry shipment in SA marks end of 'chicken wars'

“South Africa has met the benchmarks that we’ve set forth and they’ve taken the needed steps to make American poultry, pork and beef available to consumers in South Africa,” US Trade Representative Michael Froman told reporters on a conference call on March 2. “The removal of these barriers could mean an additional $160m of exports from the US each year.”

To remain beneficiaries of Agoa, countries are required to cut barriers to US trade and investment, operate a market- based economy, protect workers’ rights and implement economic policies to reduce poverty.

Shipments of farming goods worth $154m made up about 14% of South African exports to the US under Agoa in the first nine months of 2015, according to data from the Trade Law Centre, based in Stellenbosch. The nation is the largest non-oil-exporting beneficiary under Agoa and the bulk of its shipments under the accord are vehicles and car parts.

Losing Agoa access would have hurt the nation’s citrus, nut and wine industries, associations for the products said in January.

Brent Crude
All Share
Top 40
Financial 15
Industrial 25
Resource 10
All JSE data delayed by at least 15 minutes morningstar logo
Company Snapshot
Voting Booth
Please select an option Oops! Something went wrong, please try again later.
I'm not really directly affected
18% - 1961 votes
I am taking a hit, but should be able to recover in the next year
23% - 2565 votes
My finances have been devastated
34% - 3818 votes
It's still too early to know what the full effect will be
25% - 2746 votes