U.S.-South Africa AGOA Talks: Substantial Progress, But Details Remain

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U.S. and South Africa continue to negotiate in “extra time” on several trade issues, with substantial progress being signaled by some sources despite reports from some general media indicating no substantive movement has been seen on issues surrounding beef, pork and poultry trade between the two sides.

“We’ve made what both sides are acknowledging as considerable and discernable progress, including through the holiday period” where progress was made on several outstanding issues, South African Trade Minister Rob Davies told reporters in Pretoria (link). He detailed that there is now an avian influenza certificate on the South African side, rules for administration of the quota that was published Dec. 18 and have “for all practical purposes, concluded on the pork issue.”

As for beef trade issues, Davies said the latest issues there are focusing on whether the rules apply specifically to beef born and raised in the U.S. or whether they apply to beef coming into the U.S. from other countries. “We have submitted a proposal [that] we are waiting to hear the answer to,” he said, “that beef that comes in from neighboring countries which has been part of the United States’ herd for 90 days… that beef will qualify after a quarantine period of 90 days, that would qualify as though it was born and bred in the United States.”

However, Davies observed there is still an “outstanding matter” relative to salmonella. “There have been a lot of interactions between our veterinary authorities on the question of salmonella, really the levels for tolerance for salmonella and the procedures that would follow the detection of any salmonella.”

While the two sides had a “deadline” of Dec. 31 to reach a deal under the African Growth and Opportunity Act (AGOA), Davies invoked a soccer phrase to describe where the talks stand now. “We are recognizing that we are in extra time – that we’re past full time, if you like, but we’re in extra time,” Davies stated, “But the whistle hasn’t as of this moment been blown, and we are hoping that the whistle will not be blow to give our veterinary authorities on both sides an opportunity to engage again.”

Another session is set for Jan. 6, Davies informed, “and the work will continue whether the whistle is blow or not because the consequences of the whistle being blow would be that certain products that are currently enjoying access under AGOA, those are the agricultural products, would be excluded, and we have to see the terms of that exclusion.” Specifically, Davies said a key would be whether it is a partial exclusion for a period of time and if no solution was found, that would be ramped up.

Should there be a partial exclusion and a deal is reached, Davies said the understanding is that it would be a quick reversal to remove the exclusion. “We are not the ones that blow the whistle,” he added, saying they are continuing to work toward a solution, one that would allow South Africa to honor their commitments made in Paris talks on poultry and also commitments made on beef and pork but also to “ensure that we do not pose risks to human and animal health in South Africa. That is what the issue has been all along.”

The products that could be affected include citrus, macadamia nuts, canned fruit, wine and avocados, according to officials.

That focus on the sanitary and phytosanitary issues has not been a “game as a protectionist measure to keep U.S. products out,” Davies said.

Echoing those sentiments, Minister of Agriculture, Forestry and Fisheries Senzeni Zokwana said South Africa has not lowered its trade standards in the talks with the United States. “South Africa bases its health animal requirements on the world organization for animal health quotas,” he stated. “So, we are not lowering or heightening, we are sticking to the standards that were set globally on which the United States is part of.”

While the poultry quota was announced and worked out in December, Health Minister Aaron Motsoaledi simply said that his country “is adhering to standards that are set globally. We do not want unacceptable risks to human health.”

Under the AGOA accord between the U.S. and 39 African countries, it eliminates import duties on more than 7,000 products ranging from textiles to manufactured items. To continue those benefits, the countries have to eliminate barriers to US trade and investment, operate a market-based economy, protect workers’ rights and implement economic policies to reduce poverty.

US officials have confirmed that work is ongoing between the two countries, with a spokesman for the U.S. Trade Representative telling Bloomberg BNA, “We are continuing to work with South Africa to remove the barriers that block American poultry, beef and pork.”

Comments: Both sides are still working with South African painting perhaps a more-positive or optimistic view of the discussions. That may be why some in the US media have reported that no progress has been made on beef, pork and poultry trade issues, even as South Africa’s Davies indicated most of the pork issues have been dealt and they are awaiting word on issues relative to beef. And it also seems that both sides view any action to remove AGOA benefits from South African products would initially be on agricultural products and could quickly be reversed in the event of an agreement being reached. So this situation with South Africa is little different than other trade-related negotiations – the final details are the hardest to work out and those are likely where the biggest potential benefits to both countries could materialize. But some are apparently taking the view that little progress has been made, a view which sources signal is not accurate.

NOTE: This column is copyrighted material; therefore reproduction or retransmission is prohibited under U.S. copyright laws.