South Africa seems to have lost another round in its bid to have unrestricted access to the United States African Growth and Opportunity Act (Agoa) programme after it missed a deadline last week to agree on new animal health and food safety rules, which affect US beef, poultry and pork exports.
Following the expiry of the October 15 deadline, the US vowed on Monday to press ahead with a review that could cut South Africa's access to trade benefits, according to global news reports.
Reuters news agency cited US Trade Representative spokesman, Trevor Kincaid, as saying that South Africa had missed the deadline, leaving Washington “no choice but to move on with a review of South Africa's eligibility for benefits under Agoa.
"We have to complete a review of South Africa's compliance and, if it is not meeting the eligibility requirements under Agoa, we must take action," Kincaid reportedly said in an emailed statement.
“Accordingly, and taking into account the commitments that remain outstanding, we are proceeding to complete the review and determine the appropriate action in light of the results," he said.
Cutting access to Agoa could see South Africa lose as much as $1.7 billion in exports a year. There is no set deadline to complete the review.
Senators from the chicken-producing states of Delaware and Georgia said they were “disappointed” that South Africa had failed to follow through on opening its markets after agreeing in June to drop anti-dumping duties on bone-in chicken.
"South Africa must take the necessary steps to resolve outstanding barriers to US poultry immediately if its Agoa benefits are to be preserved," Democrats Tom Carper and Chris Coons and Republican, Johnny Isakson, said in a joint statement.
