JOHANNESBURG - South Africa’s citrus and nut industries remain resilient despite uncertainty over the country’s continued access to the United States market under the African Growth and Opportunity Act (AGOA).
The US recently extended AGOA, providing relief for South African exporters. However, Washington is once again reviewing beneficiary countries to determine whether they remain eligible for the trade programme.
READ: AGOA extension brings relief for South African exporters
The announcement on eligibility has previously been made between 31 October and 2 November.
The criteria include reducing trade barriers with the US, combating corruption and avoiding actions that undermine US national security.
Agricultural economist Wandile Sihlobo says the review should not be cause for panic.
“By saying that this is not catastrophic, it does not mean to minimise the impact it would have on those industries,” he says.
Sihlobo says South Africa could face some impact, but the severity would depend on how quickly the country responds to maintain its competitiveness.
The duty-free access to the US market previously provided by AGOA has already been undermined by other tariffs imposed by the White House.
READ: AGOA extension gives hope for engagements with US, says Tau
Exclusion from AGOA could add 3.5% to the average cost of getting goods across the US border.
US politicians have previously threatened to remove South Africa from the programme, while relations between the two countries remain strained.