Finance

Obama threatens to exclude South Africa from AGOA

Wednesday, 11 November 2015 18:41

The American president Barak Obama threatened, on 5 November, to leave South Africa out of the AGOA programme (Africa Growth and Opportunity Act), a system of trade preferences granted by the United States to sub-Saharan African countries.

According to the White House, this threat is driven by the fact that Pretoria maintains barriers which prevent the entry of American poultry products on the South African market.

In a letter sent to the Congress, Mr. Obama lamented that “South Africa continues to impose barriers to the trade with the United States, including on the agricultural exports”. He however gave the South African authorities a period of 60 days to lift these restrictions. Period after which, the rainbow nation will be suspended from the AGOA.

South Africa imposed in December last year restrictions on the import of American poultry due to health risks linked to an avian flu epidemic which is currently hitting the US. These restrictions came in addition to other obstacles to the entry of American pork and beef meats on the South African market.

Reacting to the American threat, the South African minister of Trade assured that negotiations are ongoing to find an agreement between the two countries.

The AGOA programme exempts from customs duties over 70% of products from sub-Saharan Africa. This system instituted by the American Congress in 2000 was renewed at the end of June for an additional 10 years.

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