American companies in South Africa are concerned that some EU companies who are their competitors were getting five to 25 percent reduction in duty, a treatment which is denied to the U.S. companies, Assistant U.S. Trade Representative for Africa, Florizelle Liser,said at a press conference in Johannesburg.
This happened when South Africa was enjoying duty free access to the U.S market to sell their products, she said.
There are over 600 U.S. companies operating in South Africa, and this pushed American government to force South Africa to comply with certain compliances in relation to the African Growth and Opportunity Act (AGOA), Liser said.
Liser, however, denied that her country was arm twisting South Africa to agree to the U.S. demands.
U.S. President Barack Obama gave South Africa until March 15, 2016 to meet certain conditions before being fully accepted back into the AGOA benefits.
Failure to do so would result in South Africa’s exclusion from the act, which would mean SA’s suspension of duty-free treatment to all AGOA-eligible goods in the agricultural sector.
About 65, 000 tons of U.S. poultry would be imported into South Africa annually under the AGOA agreement. In return, the U.S. would open its markest to South African fruit, wine, citrus and other agricultural products.
Nkululeko Khumalo, who works at the International Trade Administration Commission of South Africa, said the U.S. has an advantage in the AGOA negotiations.
“The U.S. has an upper hand in resolving this issue. South Africa is vulnerable in the relationship with the United States. South Africa and the Southern African Customs Union (SACU) need a contractual arrangement with the U.S. as it wants better access to the SACU to level field like the EU,” Khumalo said.
AGOA was revived by the U.S. Congress and endorsed by Obama, after its first term expired in September 2015. The Act removes some import levies on more than 7, 000 products ranging from textiles to manufactured items and benefits 39 sub-Saharan African nations, but under certain conditions. Enditem
Source: Xinhua
