“I have decided to suspend the application of duty-free
treatment for all AGOA-eligible goods in the agricultural sector from
South Africa for purposes of section 506A of the 1974 Act, effective on
March 15, 2016,” US President, Barack Obama, said in a statement.
This news comes at a time when South Africa’s economic climate is worsening with the local currency on a freefall.
Obama said that Africa’s second largest economy had not met
requirements making the country eligible as a beneficiary of the AGOA
treaty.
The African Growth and Opportunity Act (AGOA) signed in 2000 allow
select products to access the United States market on duty-free.
“Suspending the application of duty-free treatment to certain goods
would be more effective in promoting compliance by South Africa with
such requirements than terminating the designation of South Africa as a
beneficiary sub-Saharan African country,” added Obama.
Efforts to get a comment from South Africa's department of trade and industry were unfruitful.
By: Trust Matsilele.
Review: Emerging Market Formulations & Research Unit, Flagship Records.
For The #FacebookTeam