Get more Mail & Guardian
Subscribe or Login

Davies announces Agoa breakthrough

Cape Town -Rob Davies, the minister of trade and industry, announced on Thursday that there had been a breakthrough in outstanding matters over Agoa – allowing the agriculture and automotive sectors in South Africa to continue to derive trade benefits of entry into the United States.

In return, South Africa would accept imports of 65 000 tonnes of poultry a year from the United States, subject to a rigorous health checking process. South African and US diplomats – advised by veterinarians from both sides – forged agreements on outstanding matters concerning various diseases affecting meats imported from the US, including salmonella and avian flu.

South Africa will now allow imports of poultry and pork that satisfy health standards in the US.

The announcement by Davies will come as a relief to the agriculture and automative industries – particularly BMW and Mercedes, which stand to benefit from continued absence of tariff barriers through Agoa.

Davies said: “There has been a satisfactory conclusion [to negotiations] … we will get 65 000 tonnes [of poultry] per annum from the United States.”

While it was reported that the US could impose a suspension of importation of agriculture products from South Africa barrier free, this now falls away. This means that South Africa’s citrus industry – which exports about 110 000 tonnes a year to the United States – will save about $6-million in duties every year.

Altogether about 62 000 jobs that benefit “in one way or the other” by Agoa would now continue to be underpinned by the 16-year old Agoa agreement, reported Davies. “Agoa remains a valuable opportunity for south African exporters.”

The minister – who was flanked by the health and agriculture ministers at a press conference in Pretoria but beamed to Cape Town – said there would be relief of about $47-million in tariffs as a consequence of the agreement. Most of that benefit would apply to the automotive sector in South Africa, he reported.

Subscribe for R500/year

Thanks for enjoying the Mail & Guardian, we’re proud of our 36 year history, throughout which we have delivered to readers the most important, unbiased stories in South Africa. Good journalism costs, though, and right from our very first edition we’ve relied on reader subscriptions to protect our independence.

Digital subscribers get access to all of our award-winning journalism, including premium features, as well as exclusive events, newsletters, webinars and the cryptic crossword. Click here to find out how to join them and get a 57% discount in your first year.

Donwald Pressly
Guest Author

Related stories

WELCOME TO YOUR M&G

If you’re reading this, you clearly have great taste

If you haven’t already, you can subscribe to the Mail & Guardian for less than the cost of a cup of coffee a week, and get more great reads.

Already a subscriber? Sign in here

Advertising

Subscribers only

Canna-business deal for Ingonyama Trust land

Foreign investment has been lined up for a joint venture with the Ingonyama Trust Board, which administers tribal land for the Zulu monarch

NPA ‘refuses’ to prosecute Oscar Mabuyane

The Hawks have accused the NPA of ‘dragging its feet’ despite voluminous evidence against the Eastern Cape premier

More top stories

ANC Durban election candidate shot dead while on door-to-door campaign

One other man was shot dead and two others were rushed to hospital with gunshot wounds

Rule of law drops globally, including in South Africa

Security and corruption prevents the country from ranking higher on the World Justice Project Rule of Law Index for 2021

Slice of life: ‘I can read nine or 10 books...

David van der Westhuizen, a street bookseller based at the KwaZulu-Natal Society of the Arts Gallery in Durban, tells Paddy Harper how he survives unemployment

South Africa opens up vaccinations for 12 to 17 year-olds

Vaccinology researcher Professor Shabir Madhi said young people were being vaccinated to reduce the number of people who could transmit the virus and the focus should instead be on people over the age of 50
Advertising

press releases

Loading latest Press Releases…
×