Duty-free imports to US on agenda

SOUTH Africa will be lobbying US President Barack Obama to back its efforts to retain duty-free imports for certain products into America.

The US is expected to review the African Growth and Opportunity Act (Agoa) in 2015 but Trade and Industry Minister Rob Davies was hoping to sway the decision with Obama’s help.

Briefing the media in Pretoria yesterday Davies said it would be in South Africa’s, the African continent’s and America’s best interest to roll-over the exclusion for 15 to 20 years.

The US decision, largely on the basis that the South African economy was the strongest on the continent, could also impact negatively on regional trade as it would no longer be privy to the same customs conditions.

“It’s very important that different members of Southern African Customs Union are not treated differently. It could weaken the coherence of regional bodies and integration.

“But we also think that Agoa is a very significant instrument to benefit the US not least because it is a widely appreciated measure by the United States which would afford the United States a high degree of goodwill with its relationship with a number of countries in the African Continent,” said Davies.

Currently there are more than 600 US companies based in South Africa which benefit directly and indirectly from wide ranging trade agreements.

The country was also the export gateway for US products into the continent.

“That is the message that we of course will be conveying [to Obama] over the particular visit,” he said.

But Davies added that an extension of the benefits of Agoa was not “a done deal”.

“This is a piece of legislation that emanates from the US Congress, the legislature. It’s not something which the administration [Obama] is responsible for.”

American Chamber of Commerce in SA president and president and CEO of Ford Motor Company South Africa Jeffrey Nemeth said he was also willing to champion South African’s bid.

However he said while the country’s trade and investment structures were strong, moving forward South Africa needed to strengthen open trade and market access on the continent.

Obama arrives in South Africa tomorrow and is expected to hold bi-lateral talks with President Jacob Zuma on Saturday.