US Ag Producers Demand South African Trade Concessions in AGOA Review

U.S. agricultural producers urged the Office of the U.S. Trade Representative to pressure South Africa to remove unnecessary trade barriers on U.S. exports in comments submitted as part of USTR’s out-of-cycle of the country under the African Growth and Opportunity Act (here). USTR is convening a hearing on South Africa’s AGOA beneficiary status on Aug. 7, and the window for comments closed on Aug. 5 (see 1507200019). A range of U.S. agriculture companies and associations were set to testify at the hearing.

The South African and U.S. poultry associations recently struck a deal to remove antidumping duties on 65,000 metric tons of U.S. poultry exports, said the National Chicken Council and the U.S. Poultry and Egg Export Council in their comments. U.S. lawmakers had threatened to remove South African AGOA benefits unless South Africa agreed to significant concessions (see 1506050062). The U.S. chicken producers warned South Africa against falling short on its commitment. “In our view, South Africa will have only made the progress it is required to make under the AGOA renewal legislation when there are actual imports of U.S. poultry moving into South Africa,” said the comments. “Our industry will accept nothing less, and we believe that Members of Congress will accept nothing less.”

U.S. meat producers pushed for South African removal of its ban on U.S. beef, put into effect in 2003 over bovine spongiform encephalopathy concerns. “Notwithstanding the large body of scientific evidence supporting U.S. beef’s safety, which has been determinative for the OIE and most beef trading countries, South Africa has chosen to keep its borders closed to U.S. beef,” said those producers, which include the National Cattlemen’s Beef Association, the U.S. Meat Export Federation and the North American Meat Institute. “We strongly encourage [USTR] to capitalize on the opportunity afforded by the upcoming out-of-cycle review to engage the government of South Africa.”

The National Pork Producers Council, however, called for outright withdrawal of South African status in AGOA, citing unfair barriers. “South Africa enforces harsh and unjustifiable import restrictions on U.S. pork to prevent diseases for which there is a negligible risk of transmission from U.S. product. Efforts to resolve the matter have actually been met with even harsher and less defensible measures by South Africa,” said the comments. Full removal of South Africa from AGOA “is the only action that will draw the attention of high-level officials to the anti-trade policies being enforced by government agencies.” If withdrawal of benefits is not possible, NPPC said USTR should eliminate beneficiary status for nine South African products, including macadamia nuts, fruits and auto bodies.