US turnabout raises questions over Agoa intent

Ray Smuts THE SPIRIT and intent of the African Growth and Opportunity Act (Agoa) is under extreme scrutiny as the South African canned pear industry challenges the United States - engineers of the accord - over its apparently inexplicable turnabout on duty-free status for this popular fruit from Africa's southernmost region. Just how South African pears came to be included as Agoa duty-free among almost 2 000 African commodities is a matter of conjecture given that South Africa's other three canned exports - mixed fruit, apricots and peaches - are exempt. Following protests by its pear industry, the United States is now seemingly proposing the removal of South African canned pears altogether from Agoa and imposition of a 15.3% import duty which could come about sooner rather than later. The US Government has not yet made a firm announcement but the South African pear industry, mindful of what could be in the offing, is not taking any chances. So much so that Washington DC attorneys have been briefed to lobby in particular those pro-free trade groupings in the US Congress. (The South African Government and its embassy in the US capital is also fully apprised and has taken up the cudgels). Wynand du Plessis, a director of the SA Fruit and Vegetable Canners' Association, believes that if the proposed 15,3% duty is implemented, it could amount to between R4 million and R6 million a year and Du Plessis believes the industry would be bound to assist its contracted US clients to absorb such duty which could well lead to a reduction in prices.