The United States is moving to extend for a further two years the AGOA trade agreement that offers duty-free benefits African countries.
The extension, to the end of 2028, has passed the US Senate, BusinessTechreports, and must be approved by the House of Representatives before being sent to President Donald Trump for assent.
While the South African government will welcome the fact that South Africa remains among the beneficiary countries, and that threats to remove it have not materialised, most AGOA benefits exist on paper only. President Trump’s worldwide tariffs have negated the duty-free access to US markets that South African exports used to enjoy.
South Africa’s poultry industry, however, could face another two years of the huge annual quota of chicken the US can export to South Africa free of the anti-dumping duties that should apply.
The poultry industry has applied in vain to have the quota scrapped, because in terms of the AGOA legislation, it should exist only while other South African industries enjoy beneficial access to the US. As US tariffs have nullified those benefits, the poultry industry argues, the quota should fall away.
Following a lack of government response, the industry has instituted legal action to force the termination of the US quota.
The government may have a way round this legal dilemma. The quota may instead be included in a South African trade deal with the US, which has yet to be finalised. That would make it a permanent feature, not related to the AGOA agreement.
US trade negotiators are reportedly demanding an end to all South African tariffs on its chicken exports to South Africa. This would include general tariffs as well as the anti-dumping duties that have been in place on American chicken portions since 2000.
