The United States says it is looking forward to a positive response to its proposal for a free trade pact with Southern African Customs Union (Sacu) countries.
US ambassador to Pretoria Cameron Hume said on Thursday that the suggestion was put forward in February by US trade representative Robert Zoellick during a visit to the region.
This week’s passage of the US’s 2002 trade act, which extends concessions already granted under the African Growth and Opportunity Act (Agoa) solidified the US’s ability to move forward on the issue.
”That clears the decks on our side and we’re ready to go,” he told journalists during a visit to a clothing factory in Cape Town.
He said the US was looking forward to a positive response from Sacu, and he was confident this would come. The agreement could provide tremendous benefits for both sides.
Hume also urged South African manufacturers to take advantage of Agoa, which allows African countries duty-free entry of a wide range of goods, including clothing into the US market.
”This gives you an opportunity in a period, for example, before China benefits completely from membership of the World Trade Organisation,” he said.
”It gives opportunity, but a sense of urgency, please. Take it.”
Hume said the US government’s own research indicated that Agoa had meant the creation of 30 to 50 000 jobs in all sectors since the law became operative in 2001.
During the first six months of this year clothing exports to the States ran at $6-million a month, compared to $4-million a month for the same period in 2001.
From January to June South African customs authorities had issued over 900 Agoa ”visas” for clothing shipments to the States worth $38-million.
”These figures represent more than dollars and cents — they represent jobs in South Africa,” he said.
Commenting on calls by the Comesa group of African countries for Agoa to be extended beyond its current expiry date of 2008 by as much as 20 years, he said 2008 gave enough time to change trading patterns.
Agoa had been a decision of the US government, not a product of negotiation, and 20 years sounded like a matter for negotiation.
”Five years is already a long time in our system,” he said.
According to US figures, the total of all Agoa exports from South Africa last year was $923-million, of which $506-million represented normal generalised system of preferences (GSP) products and $417-million the new products added by Agoa.
This compared to a total of $583-million in duty-free GSP products to the US in 2000.
The chairman of the export council for the clothing industry in South Africa, Jack Kipling, said apparel exports from South Africa had grown 151% over the past two years, with the US accounting for 60% or R1,2-billion of the market.
The contribution Agoa had made to the local clothing industry was ”absolutely incredible”.
”Certainly we have put a stop to the job losses,” he said. – Sapa