What Is The Major Benefit Of The Agoa Agreement For South Africa

President Cyril Ramaphosa will participate in a virtual roundtable on business and investment on Tuesday, November 10 with representatives from three major U.S. trade organizations. The organizations are the Business Council for International Understanding (BCIU), the Corporate Council on Africa (CCA) and the U.S. Chamber of Commerce. « The president. Some argue that AGOA is contrary to WTO rules. [Citation required] Moreover, it is considered a unilateral agreement because there has been little involvement of Africa in its preparation. It is important to note that AGOA is a preferential trade agreement, not a free trade agreement. A free trade agreement is a treaty between two or more countries aimed at creating a free trade area in which trade in goods and services can be conducted across their common borders without tariffs or obstacles. A preferential trade agreement is a trade pact between countries that lowers tariffs on certain products to countries that sign the agreement. Although tariffs will not necessarily be abolished, they will be lower than those of countries that are not party to the agreement. It is a form of economic integration. The U.S.

Department of Commerce describes AGOA as « the most liberal access to the U.S. market available to any country or region with which the United States does not have a free trade agreement. » AGOA should, in part, create a pathway for the United States to develop free trade agreements with certain African markets; However, this has not happened yet. But South Africa nearly lost its main benefits of agoa last year following an « off-cycle » review triggered by U.S. poultry, pork and beef producers who complained South Africa was hurting Agoa by blocking imports of its products. Kevin Lovell, CEO of Sapa, said the appointments of Sapa and Sappo should not have a negative impact on the Agoa deal, as it was not an attack on agreed quotas. « All we want is for the U.S. to follow the same protocols as any other country. » AGOA has led to limited success in some countries. In addition to the growth of the textile and apparel industry, some AGOA countries have begun exporting new products to the United States, such as cut flowers, horticultural products, automotive components, and steel. While Nigeria and Angola are the largest exporters under AGOA, other countries, especially South Africa, have been more diversified and, unlike the former, do not focus primarily on the energy sector. .

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