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TRADE RELATIONS
SA will seek to extend Agoa benefits beyond 2015
 
23rd April 2010
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Trade and Industry Minister Rob Davies says the South African government has put forward a proposal to the US government to roll over the African Growth and Opportunity Act (Agoa) "for a reasonable period of time".

Agoa is to come to an end in 2015.

Agoa allows for the duty-free and quota-free entry of around 7 000 product lines into the US from 37 designated sub-Saharan countries. These product lines include vehicle and component exports, such as the Mercedes-Benz C-Class, produced in East London.

Automotive exports to the US numbers $2-billion in 2008, slipping to $1,4-billion in 2009, owing to the global economic crisis diminishing demand, says US ambassador to South Africa, Donald Gips.

Davies says the South African government is "grateful" for the access Agoa provides, and that it has been vital in the promotion of the country's automotive industry exports.

He says it will create a difficult situation should there be "big departures" from the current Agoa programme.

Gips says the US Congress is to make a decision on Agoa, investigating whether it requires a renewal and/or modifications.

 

Edited by: Martin Zhuwakinyu

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