Johannesburg - The US will revoke the proclamation suspending duty-free access for South Africa’s agricultural products as soon as the first shipment of US poultry exports arrive in the country, ending a dispute that threatened Pretoria’s continued participation in the African Growth and Opportunity Act (Agoa).
The Department of Trade and Industry (dti) and the Department of Agriculture, Forestry and Fisheries were working closely with the US embassy, local importers and US exporters to facilitate the first shipments of US poultry under the agreed quota for US bone-in-chicken pieces, the dti said in a statement yesterday.
It reiterated that all of South Africa’s Agoa benefits remained in place and the new proclamation issued by President Barack Obama announcing the suspension of agriculture benefits on March 15 would be lifted as soon as the first shipment of poultry enters the South African market.
The dti’s statement sought to quell confusion about whether an agreement reached last week to resolve long-standing animal health and safety concerns over US meat exports had been communicated in time to void the Obama proclamation.
“We are thus confident that the first shipment will arrive in the next few weeks and the US president will consequently revoke the above proclamation,” it said.
The deal was announced at a press conference in Pretoria on January 7, opening the door for South Africa to begin importing US poultry, beef and pork.
US trade representative ambassador Michael Froman hailed that deal, saying: “We are pleased that South Africa and the United States reached agreement to resolve barriers to US poultry, pork and beef.”
He indicated the US required to see “American product in local stores” before any threat of suspension was lifted.
South Africa has been under pressure to reach agreement with the US to open its market to American meat in order to retain benefits under the Agoa accord, which favours 39 African nations by eliminating import levies.
To remain beneficiaries, 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.
Trade and Industry Minister Rob Davies said last week that he expected South Africa to continue participating in Agoa without interruptions after reaching a deal with the US on health standards for meat.
A US trade representative spokesman said: “With the substantive points resolved we are able to move to the final benchmark – testing the new system to make certain American poultry can be made available on store shelves in South Africa.”
The country would “allow sufficient time for our (US) product to enter South Africa and (we) are making sure with stakeholders in both countries to ensure this happens quickly”.
* With additional reporting by Bloomberg
TIMELINE
December, 2014: Two US Senators, Chris Coons and Johnny Isakson, send a letter to President Jacob Zuma in which they caution against South Africa’s refusal to eliminate “unfair duties” on US poultry that could jeopardise South Africa’s eligibility for the African Growth and Opportunity Act (Agoa).
March 2015: Coons meets with South African government officials to resolve the dispute. Thirteen US senators write to Davies to resolve dispute.
June: South Africa and the US agree to a US poultry import quota of 65 000 tons a year.
September: Coons and Isakson again write to Zuma urging him to open up the local market to US poultry “expeditiously”.
October: A deadline is missed for resuming US poultry imports. South Africa and the US had set an October 15 deadline to agree on new animal health and food safety rules, which also affect US beef and pork exports and are estimated to cost the US more than $80 million (R1.3 billion) a year.
November: US President Barack Obama signs a letter to suspend the application of duty free treatment to all Agoa-eligible goods in the agricultural sector for South Africa within 60 days.
December 21: The Minister of Trade and Industry, Rob Davies, held talks with US Trade Representative Ambassador Michael Froman on the sidelines of the World Trade Organisation’s 10th Ministerial Conference in Nairobi, Kenya, to assess progress made towards resolving outstanding issues over South Africa’s continued participation in Agoa.
January 4, 2016: The deadline for sticking points between South Africa and the US to be resolved passes.
January 6: South Africa and US negotiators strike a late night deal that will see the resumption of US duty-free meat exports to South Africa, following a 15-year hiatus.
January 12: The US will suspend South Africa’s preferential access for agricultural products under Agoa from March 15, according to a proclamation issued by Obama.
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