Davies still confident of agri-exports after Obama ultimatum letter

Davies addresses parliament on Obama’s letter today.

South Africa will be able to resolve the outstanding African Growth and Opportunity Act (Agoa) issues within 60 days, according to Minister of Trade and Industry, Dr Rob Davies.

He was referring to the time-frame set by United States president, Barack Obama, in a letter sent to president Jacob Zuma yesterday, warning that South Africa had until January 4 next year to show that it was meeting Agoa requirements before he imposed tariffs on South African agricultural products.

Under Agoa, South Africa receives duty-free status on its agricultural exports. This includes citrus products, macadamia nuts and wine.

Speaking in parliament on Friday in response to Obama’s ultimatum, Davies, said: “This notice (US letter) talks about agricultural products and is reversible. We believe we are close to finalising the issue, which is a veterinary matter.”

Faizel Ismail, department of trade and industry (dti) special envoy to Agoa, told parliament: “I am in constant contact with US negotiators. We are on track.” He added that the dti had been given advance notice of the letter and that he had facilitated a call between Davies and the US.