South Africa: Despite Announcement, U.S. Not Suspending AGOA Benefits
The South African government believes that President Barack Obama’s Jan. 11 announcement (here) of suspension of benefits for all South African agricultural goods eligible for duty-free treatment under the African Growth and Opportunity Act (AGOA) will be lifted as soon as the U.S. can verify that its poultry is being sold in South African grocery stores, South Africa’s Department of Trade and Industry (DTI) said in a Jan. 12 statement. “South Africa wishes to clarify that all its AGOA benefits remain in place and the new proclamation issued by President Obama announcing the suspension of agriculture benefits on the 15th of March will be lifted as soon as the first shipment of poultry enters the South African market,” it said.
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If the White House does not rescind Obama’s proclamation, the duty-free benefit removals will take effect on March 15. The harmonized tariff schedule would then reflect the changes, Obama said. The South African government said last week that it had met all the conditions to remain in AGOA, (see 1601070011). The U.S. pressured South Africa to remove trade remedies and sanitary and phytosanitary barriers for several months (see 1509140023), and industry groups expressed support for suspending AGOA benefits for South Africa to counteract antidumping duties and expand trade flows.
South Africa’s Department of Agriculture, Forestry and Fisheries, and DTI are “working closely” with the U.S. Embassy in Pretoria, local importers and U.S. exporters, to facilitate the first U.S. poultry shipments under the quota, said the DTI. “We are thus confident that the first shipment will arrive in the next few weeks and the US President will consequently revoke the above proclamation.”
South Africa created Rebate Item 460.03/0207.14.9/01.07 to access the quota on U.S. bone-in chicken, and 16,250 megatons will be available for use until March 31 on a first-come, first-serve basis for all importers. “The only process required is to clear the goods under this rebate item at the time of entry of the goods into South Africa and for a sufficient portion of the volume of 16,250 MT being available to cover the volume of bone-in chicken pieces being imported,” the statement reads. “No special forms or permits will be required until 1 April 2016.” 65,000 megatons will be available for use under the rebate item on a yearly basis starting April 1, according to the statement. USTR didn't comment.
Email ITTNews@warren-news.com for a copy of South Africa’s statement.