Tag Archive | AGOA agreement’

Plenty in the way of AGOA agreement

Sorting out AGOA agreement by Jan….

Sent to clients 17 Dec…. During a briefing to Parliament, it became evident once again that the SA Cabinet perceives the renewal of the AGOA agreement in the overall context of trade being attached in the future to a development price. The briefing was by DDG Kgabo Mahoai of the Department of International Relations and Cooperation (DIRCO).
Kgabo Mahoai

Whilst the advantages of a signed AGOA agreement to South Africa were great without doubt, Mahoai said, it had to be considered within the overall context of trade between Africa and the rest of the world. He was at pains to express that this was not just South Africa’s view.

AU plans for Africa

The overall African Union theme being developed by African states was clearly confirmed by DIRCO in that as a generalised policy, investment by international companies to gain access to poorer African zones had to be accompanied by reportable programmes of contributions to skills development, education, and small business and towards the upliftment of the African continent in general.   A price, he said, had to be attached for access to the African market.

Hence the Black Industrialists Investment Programme, devised by Department of Trade and Industry (DTI), they said, and whilst US President Barack Obama had given South Africa 60 days until January 4 to show it is meeting the requirements of AGOA before the US imposes normal tariffs on South African agricultural products, the two matters of development and trade were inter-dependent, whatever US senators might feel.

In the background

However, the whole issue is complicated by a third issue, say critics of DTI’s slowness in finalising AGOA, by the passage of the Private Security Industry Bill, held back by President Zuma and appearing to be compounded by national intelligence issues according to MPs. DIRCO said they could not discuss this but it was evident from questioning by MPs that this was “the elephant in the room” when it came to general US-SA trade relationships.

chickenWhilst the debate on AGOA has been complicated by US senators over anti dumping duties that South Africa had imposed on US chicken wings and drumsticks in 2000 – the argument then extending to meat and pork products – the stakes are high since the agricultural section of AGOA (which could be this isolated from AGOA and lose its duty-free status) involves some additional R140m of exports in wine, citrus and nuts, in addition to meat and poultry.

Kick back…

Senior SA MPs across party lines have observed that the position for DTI has also recently radically altered in that drought has seen the necessity to import cheap chicken as a substitute in the absence of red meat to poorer and lower income groups. This has adversely affected the SA position in negotiations.

No doubt, this is the dilemma facing DTI, Minister Rob Davies, having recently stated that “everything had been done which was possible to meet US requirements on certifications issues but did not wish to intervene in matters relating to ongoing veterinarian discussions between the two countries.”

In other words, previous arguments that the “US was bullying smaller countries into trade agreements advantageous to the US” might now have been negated by an additional need for chicken on the local market. Whilst meat is preferred in the average African household, chicken is a relatively cheaper substitute and acceptable, especially chicken wings and drum sticks, the drought in SA having changed the “quid pro quo”.

DTI at the front

DIRCO in their briefing said that they did not wish to make statements to MPs on “DTI territorial areas” but they were assisting where possible to ensure that the AGOA agreement was satisfactorily concluded in all aspects. Also the US, DIRCO was sure, were meeting all “developmental requirements” on general US-SA relationships, both here in the commercial world and on an inter-governmental basis.

DDG Kgabo Mahoai felt confident, he concluded, that AGOA was to be renewed in all aspects despite further late “anti-SA lobbying by some US senators attempting to resuscitate pressure on President Obama.”

Inside job

At this point, the meeting was disrupted by unruly NEHAWU protesters who blew vuvuzelas and sangnehawu freedom songs, disallowing any further debate. Chairperson, Eddie Makue (ANC), wisely concluded the meeting, objecting to protester’s that the disruption was illegal in terms of national law to interrupt parliamentary business. A good number of the NEHAWU demonstrators were in fact parliamentary staff and had full knowledge where meetings were taking place in the parliamentary precinct.

This was a sad conclusion to an intelligent meeting.

Other articles in this category or as background
EU and AGOA still important to SA, says govt – ParlyReportSA
AGOA : Parliament this week 3 Nov 2015 – ParlyReportSA

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