President Barack Obama gave notice of the suspension in a letter from the White House on 5 November: “I am providing 60-day advance notification of my intent to suspend the application of duty-free treatment to all AGOA-eligible goods in the agricultural [sic] sector for the Republic of South Africa 60 days after the date of this notification.”
According to the letter, Obama’s reason is that SA continues to impose longstanding barriers to trade affecting agricultural exports and is not attempting to eliminate these as required by AGOA.
AGOA allows for tariff free trade between the US and SA. As reported earlier by Farmer’s Weekly, problems surfaced specifically with the poultry industry as the South African Poultry Association (SAPA) felt that proposed poultry exports from the US could have a negative effect on the local industry.
If negotiations fail to reverse the suspension, then SA citrus exporters will definitely be less competitive than countries like Chile, Peru, Uruguay and Australia which export citrus to the US, said Justin Chadwick, CEO of the Citrus Growers Association (CGA).
He added that he had full confidence in negotiations by the departments of trade and agriculture.
“As far as I understand, vets from both countries are hard at work trying to solve outstanding issues of health certificates and protocol,” said Chadwick.
Here are some of the Tweets on the suspension:
More job cuts and another blow to Agriculture. This really makes me mad. @FarmersWeeklySA https://t.co/E4Dy9fuq2K
— Alan Winde (@alanwinde) November 6, 2015
This will affect roughly R2.4 billion of annual agri exports, such as wine, fruit juice, citrus fruit, pulp & more. – @geordinhl #AGOA
— Democratic Alliance (@Our_DA) November 6, 2015
In 2014, SA exported $1.7 billion to the US under #AGOA. SA exports more manufactured products to the US under #AGOA than any other country.
— Clayson Monyela (@ClaysonMonyela) November 6, 2015
Expect food prices and protests to rise (not fall) in South Africa. #AGOA
— Eardley Rudman (@EardleyRudman) November 6, 2015
ANC is doing so well with international relations but pathetic locally, you would think they dont know what our problems are #ICC #AGOA
— Khutšo ® (@khutso) November 6, 2015
What can we fund with the import levies on more than 7,000 products ranging from textiles to manufactured items? #THINKABOUTIT #AGOA
— Jay (@JuadiviveM) November 6, 2015
This suspension is an opportunity for us to push inter-trading and expand also within the BRICS nations…stop begging the West #AGOA
— Ntsakisi.. (@akanigates) November 6, 2015
Minister Davies must take this opportunity to transform the agricultural industry moving forward. #AGOA we thank you.
— Matlapeng (@MikeMatlapeng) November 6, 2015
