Obama suspends S.Africa products from AGOA.

“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