President Obama warned Monday that he could decide to impose import duties on South African agricultural exports if that country doesn’t start accepting U.S. meat exports by March 15.
“I have determined that South Africa is not meeting the requirements” for duty-free status under the African Growth and Opportunity Act, Obama wrote in a presidential proclamation dated Monday. The threat of ending South Africa’s duty-free status is more likely to bring South Africa in compliance than pulling its favored status under AGOA would be, Obama explained.
Obama first threatened the move in November. Since then, negotiators have hammered out a deal that should see U.S. poultry, pork and beef treated more favorably.
Obama’s proclamation is meant to be the stick to Thursday’s announcement that the impasse is finally over.
“We have extended the effective date of any AGOA action to allow sufficient time for our product to enter South Africa and are making sure with stakeholders in both countries to ensure this happens quickly so South Africa’s AGOA benefits can continue uninterrupted,” said Trevor Kincaid, spokesman for U.S. Trade Rep. Michael Froman.
If Froman determines that South Africa is allowing the estimated 65,000 annual tons of U.S. meat and poultry onto South African shelves by March 15, Obama could revoke Monday’s proclamation so that it never takes effect.
He could also reinstate South Africa’s full benefits under the trade agreement later if it takes the U.S. longer to confirm South African compliance.
