US resistance is growing against inclusion of SA
AUGUST 9 marked the last date on which SA companies or industry groups could make their case for duty-free entry to the giant US market under the Africa Growth and Opportunity Act (AGOA) - and many of the slow-movers stand to lose out on the benefits, according to Riaan de Lange, head of international trade at Deloitte & Touche.
AGOA is designed to stimulate trade from the 48 countries in sub-Saharan Africa which are themselves approved under the conditions of the Act. But, De Lange pointed out to FTW, there is already growing resistance amongst American businesses to SA's inclusion - a country which many define as too developed to be an acceptable AGOA candidate.
The information we have gathered, he said, indicates that many SA industries could face a battle in getting their goods included amongst those nominated by AGOA.
Duty-free access for goods is likely to be blocked if US companies can show that these imports could de damaging to their own industries.
The data also shows that a number of US businesses and/or groups have already laid protests - notably producers of stainless steel plate and strip (a continuing resistance which has already seen anti-dumping actions being brought); titanium; cutlery; watches and clocks; ferrovanadium; dried onions and garlic; almonds; frozen and canned apricots, canned peaches and fruit salad; and silicon.
On the SA side, the number of reported reactions to the US request for SA companies to justify the inclusion of their export products in AGOA have been very limited.
Submissions have already been made for duty-free access for products including: powder puffs, pens, suitcases, handbags and leather apparel, gloves, finished footwear, knives, scissors and kitchen utensils, ceramic tiles, glassware, radios and TVs, bicycles, watches, badminton nets and fishing rods.
The active industry sectors have been those which produce what the US authorities define as import sensitive goods - some of which, according to De Lange, could be accorded GSP (general sales preference) treatment for the first time under AGOA.
The SA Footwear and Leather Industries Association, the SA Iron and Steel Institute (especially related to that stainless steel) and the SA Textile Federation (textiles and clothing being the only detailed products already included in the Act) have already made their cases. This, De Lange said, obviously in anticipation of counter-fire from their US equivalents.
But now, the date for submissions is past, he added, and the door to the US International Trade Commission (USITC) is closed until the last public hearing of the inter-agency Trade Policy Staff Committee (TPSC) due for September 7-8.
If there is silence from SA, and US interests have submitted their opposition to duty-free imports, the US authorities are very likely to exclude these products from AGOA benefits, said De Lange.
Copyright Now Media (Pty) Ltd
No article may be reproduced without the written permission of the editor
To respond to this article send your email to joyo@nowmedia.co.za
