South Africa and US resume trade agreement,negotiations concluded

Cape Town, Jan 7 - South Africa is expected to continue as a beneficiary of a trade agreement with the US under the African Growth and Opportunity Act (Agoa), after negotiations between the two countries were concluded yesterday. The two-way trade agreement, which eliminates import levies on more than 7.000 products ranging from textiles to manufactured items, stalled after a dispute over American meat imports which South Africa claimed presented serious health and safety risks. In a November 6 letter to Congress, US President Barack Obama had given South Africa 60 days to open the market or face suspension of its trade preferences under Agoa. However, South Africa failed to meet the deadline and was in danger of having its trade tariffs re-imposed. Briefing media today, South Africa's Minister of Trade and Industry, Rob Davies, said the US had signed all documents and he is now awaiting formal indication that the trade agreement has been concluded. He said the highly pathogenic avian influenza and salmonella health issues that South Africa had with US poultry imports have been resolved and the market is now open for 65.000 tonnes of US poultry imports. The actual arrival of poultry products into the market has been open since 11:30 this morning," he said. "With regard to pork, South Africa has agreed to permit the unrestricted imports of shoulder cuts after the US agreed to apply mitigation measures. On beef, South Africa had already agreed to import beef from the US". Davies said South Africa had agreed to the assurances given by the US that their meat imports are free from health concerns. "This should ensure that Obama does not pull the plug on South Africa's participation in the special trade agreement," he said. Obama is expected to make an announcement this week. Total two-way trade between South Africa and the US under this programme was about US$ 14 billion in 2015. The trade programme has helped South Africa more than double its exports to the US since 2000. Currently, 39 sub-Saharan African countries benefit from Agoa. In order to be a beneficiary, countries are required to remove barriers to US trade and investment and operate a market-based economy. (AGI)