Publications
Partners
Cape Town - Should the Africa Growth and Opportunity Act (AGOA) deal fall through, a total of 85 000 jobs in SA's citrus farming sector could be at risk, the DA's Western Cape spokesperson on economic opportunities, tourism and agriculture Beverley Schäfer, told Fin24 on Friday.
The Western Cape Agriculture sector for instance, relies heavily on the trade of citrus fruits.
"The Western Cape contributes 70% to the total agricultural exports of South Africa. Missing this trade opportunity will have a damning impact on our regional economy," she said.
The South African Chamber of Commerce and Industry (Sacci) is very concerned by the US' serious consideration to exclude South Africa from several AGOA benefits. The US on Thursday gave SA an ultimatum of 60 to address the impasse over chicken, beef and pork imports.
"This is contrary to the assurances that (Trade) Minister (Rob) Davies gave to the country in October that its renewal was on track," Sacci said on Friday.
Sacci said South Africa has been given a life line in US Trade Representative Michael Froman's assurance that the country could still avoid the suspension if it met benchmarks to eliminate barriers. "However, if we fail to meet the requirements within the next two months we will lose the benefits."
Sacci urged the government to engage the United States to reach an agreement within the time frame so as to avoid more severe penalties that would otherwise be imposed.
Agri SA also said in its reaction to the news of a possible suspension of SA in terms of AGOA, that the possible loss of this dispensation will have wider implications on the sector as a whole.
"The agricultural sector is key to the long-term development of the South African economy and preferential access to markets such as the United States lend further support to this aim," said Agri SA.
The Western Cape investment agency Wesgro said more than R780m worth of Western Cape annual exports are at risk if the US goes ahead with its plan to suspend trade benefits on agricultural goods from AGOA.
Wesgro CEO Tim Harris said the citrus sector in the Western Cape alone employs around 6 000 people of which 4 000 are employed in sector-related jobs.
“We have to find a resolution to this dispute, because the US is a key growth market for local agricultural products,” he said.
The Western Cape’s exports to the United States under AGOA increased by an annual average growth rate of 16% between 2001 and 2014.
