Unless a last-minute change arises, South Africa will be suspended from the African Growth Opportunity Act (AGOA) today. The suspension results from SA failing to meet the 60-days deadline set by President Barack Obama last November 5 to resolve dispute regarding US exports.

President Obama then expressed his exasperation seeing Pretoria not respecting its commitment to lift barriers and open its market to US exports for poultry and beef meat. Following long talks punctuated by many threats related to the renewal of AGOA, the rainbow nation had agreed to lift the tax barriers imposed on poultry from USA since 2000 to preserve its dumping market.

Washington and Pretoria agreed that 65 000 tons of chicken from avian flu-free regions of the US would be exported to South Africa yearly. This time, the South African health standards are what stand in the way of trade between the two nations. Truly, South Africa says the US-imported poultry should be salmonella-free (the salmonella is a bacteria that dies upon cooking). “No one eats raw chicken”, replied an American executive thus confirming USA’s position which states that these standards are not based on scientific principles.    

The other challenge faced by the USA is the heath standard regarding beef meat. Truly, though Pretoria lifted last August, the barrier protecting its market from bovine spongiform encephalopathy (BSE) commonly known as mad cow disease, the US imports still have a last point to check before entering South Africa. Indeed, the American livestock includes cattle imported from Mexico and Canada that Pretoria wants out of the batch it is to receive. “Impossible” was the response of Americans to that request.

South Africans are concerned and divided because of the issue. Despite the fact that some political parties such as the Democratic Alliance blame SA’s Minister of trade Rob Davies of poor leadership and inability to resolve the dispute, some actors of the agro-food industry approve his choice. For example, Kevin Lovell, director general of poultry farmers association said: “We have good reasons not to agree on the American conditions. Our chickens contain less salmonella than theirs. Our decision is based on scientific principles. Our local industry would have been very much disappointed if the country scaled down its standards and fell under the pressure.”  

For the time being, Pretoria will be paying the price for maintaining its standards. Indeed, the AGOA which was renewed last June eliminates import levies on more than 7000 products coming from 39 sub-Saharan African nations. 1/5 of South African exports to the US benefit from this policy. Impacts would be on South African citrus. They generated $60.2 million between January and October 2015 against $51.9 million in 2014. Producers are concerned as they fear not being able to compete with Peruvians, Uruguayans and Chileans if the AGOA was really suspended.

USA is South Africa’s third commercial partner behind China and Germany. In 2014, trade exchange between the two countries was about $15.5 billion.

Aaron Akinocho