What Is The Major Benefit Of The Agoa Agreement For South Africa

While it is doubtful that AGOA will be lifted, I would not be surprised if the new government uses the threat of the elimination of AGOA as a negotiating tool. The presidents have already withdrawn the nations from the AGOA agreement. The Trump administration does not mean the end of AGOA, but it may mean that some trade relations are being reassessed. South Africa is an emerging market with average incomes and an abundant supply of natural resources; finance, law, communications, energy and transportation, and a stock exchange that is the 15th largest in the world. Although the country has a modern infrastructure that supports the relatively efficient distribution of goods to major urban centres throughout the region, there are some factors that are holding back growth. Another major obstacle is that two major supermarket chains, Pick`n Pay and Checkers, have decided not to import American poultry. Jim Wayt, managing director of Intervision Foods, one of the U.S. companies that export poultry to SA, said he was convinced it was because supermarkets were trying to avoid public perception of health problems, not because of real health problems. Some argue that AGOA is at odds with WTO rules. [Citation required] Moreover, it is considered a unilateral agreement, given that there has been little African participation in its preparation.

AGOA is not likely to be subject to repeal either, as it is not a free trade agreement. While some African products get preferential agreements that reduce tariffs, sub-Saharan countries do not work with flat-rate free trade and zero tariffs. In fact, the agreement provides the United States with access to African goods and raw materials that help stimulate the U.S. economy. The United States could benefit from possible tariffs on poultry imports from the European Union (EU) that are now entering the South African market duty-free under the EU-SA free trade agreement. Wayt said he expected South African trade authorities to make a decision on the matter on October 21. The protection that SAPA aims to protect against the increase in EU poultry imports is a safeguarding right of 13.4%. Copy of the letter from U.S. Senators Coons and Isakson to South African President Zuma, September 2015. This relates to the issue of “chicken” in the context of the AGOA review of South Africa-Out-Of-Cycle. Senators called on South African President Jacob Zuma to act quickly to resolve the remaining elements of the U.S.-South Africa agreement reached in Paris earlier this year and resume the resumption of U.S. poultry exports to South Africa.

AGOA has had limited success in some countries. In addition to the growth of the textile and apparel industry, some AGOA countries have begun exporting new products to the United States, such as cut flowers, horticultural products, automotive components and steel.


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