The value of duty-free exports from South Africa to the United States in the first quarter of this year was $269,5-million (R2,6-billion), 83% more than exports in the same period last year.
US embassy economic officer Alan Tousignant said on Friday the exports included more than 4 000 products that had qualified for duty-free access under the generalised system of preferences (GSP) before January 2001, as well as more than 1 800 items added under the African Growth and Opportunity Act (AGOA) for a fixed period until September 2008.
Speaking to reporters in Pretoria, Tousignant said South Africa’s total exports to the US increased from R29,7-billion during the year 2000 to R38,1-billion in 2001. Of this, R9,1-billion or 21% was duty-free under AGOA and the GSP.
The total value of vehicles exported during the first quarter of 2002 under AGOA reached $109-million (over R1-billion), more than triple that of January to March 2001.
The exports of edible fruits and nuts increased more than 14-fold, and that of beverages and spirits seven-fold. Bottled wine and alcohol were important beneficiaries under AGOA, Tousignant said.
The value of agricultural products and food exported in the first three months of this year — $15,8-million (R157-million) — was more than four times higher than that of the corresponding period last year. High growth was recorded in the export of fresh oranges, fresh grapes, fruit juices, jams, preserved vegetables, peanuts and other nuts.
The export of canned pears increased five-fold from 2000 to 2001, but representatives of the canned pear industry in the US had asked that its inclusion in the list of duty-free products be reviewed. This was still being considered.
The duty on canned pears was about 15,3%. Even if the product was removed from the list, South African exporters could still compete in the US, whose average tariff on agricultural products and food was 12%, compared to the European Union’s 30%.
South African duty-free clothing exports to the US in March this year were valued at R91,8-million, three times higher than the monthly average in 2001, Tousignant said.
He said South Africa could benefit indirectly from AGOA as well, as it could export fabric to other countries, like Mauritius, from where clothing was then exported duty-free to the US.
Namibia and Botswana would also get the right to use fabric from other developing countries until September 2004.
AGOA II was passed by the US House of Representatives last November, and was now under discussion between the House and the Senate. It was aimed at clarifying technical matters, mainly regarding the clothing sector.
The new legislation would double the caps on imports of non-US fabric products, Tousignant said.
At present, AGOA countries could export as much clothing made from American fabric to the US as they wanted. When they used African fabric or fabric from another AGOA country, the current limit was 3,5% of the previous year’s total imports of clothing. Beyond that, they had to pay the normal duty.
With AGOA II, the cap would be doubled to seven percent.
In the first year after AGOA became effective, more than 17% of the cap — then 1,5% — was reached, and from October 2001 to February 2002, 21%.
Therefore there was still ample capacity for expansion, he said. – Sapa