The US Act that creates economic growth opportunities in Africa was diminishing in value for South Africa, according to Trade and Industry Minister Rob Davies.
Davies told media that the costs of Agoa (African Growth and Opportunity Act) were going up, it offered South Africa the status quo and said the tariff quotas verse tonnages exported were far apart.
In his budget speech on Thursday evening, Davies said: “The US Senate has now passed a Bill that provides for Agoa to be extended for 10 years and for South Africa to be included.
“Notably absent, although indicated at an earlier stage as a possibility, is any improvement in the level of access of Agoa-eligible countries’ products to the US market. Government is working hard to remain a beneficiary of Agoa mindful of the 30-day out-of-cycle review to which we will be subjected.
“However, the reality is that with the many new conditions and changing dynamics of US trade policy, the value of Agoa is diminishing while its costs are rising.”
