Pretoria risks losing US trade benefits
By the AFREEQUE newsroom, based on Sabcnews
The South African Chamber of Commerce in the United States warns that Pretoria could lose its tariff benefits under AGOA before the end of the year. Washington could notify South Africa of its exclusion as soon as next week, while $16.5 billion of South African exports reached the United States last year, reports SABC News.
The South African Chamber of Commerce in the United States is warning that Pretoria could lose its trade benefits under the African Growth and Opportunity Act (AGOA) before the end of the year. Washington could notify South Africa as soon as next week, according to the chamber’s president, Neil Diamond, cited by SABC News.
An exclusion decided as part of the annual review would have to be notified at least 60 days before taking effect on 1 January, setting the deadline at around 2 November. South Africa exported about $16.5 billion worth of goods to the United States last year, although only some of this trade benefited from AGOA.
The warning comes as the US trade programme has been extended until the end of 2028. Neil Diamond is urging the South African government to begin talks with Washington immediately to preserve its preferential access to the US market.
The threat follows Pretoria’s preparations for a possible exit from AGOA, announced on 21 October in South Africa prepares for possible AGOA exit. It also comes amid strained diplomatic and trade relations between the two countries, after Pretoria said on 19 October that a restoration of relations with Washington was unlikely.
