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US and South Africa agree to stop blocking each other's farm trade
THE United States has resolved its dispute with South Africa over farm exports, allowing its produce to sell in the world's top economy without penalties, Reuters reported.
But US Trade Representative Michael Froman said the United States still needed to ensure South Africans were able to purchase US poultry before confirming that South Africa could enjoy full trade benefits.
"The true test of our success will be based on the ability of South African consumers to buy American product in local stores," said Mr Froman.
US President Barack Obama said he would revoke the duty-free status of South African agricultural produce unless Pretoria took action by the end of last year loosened restrictions on American produce.
"We think we have cracked the deal," said South African Trade Minister Rob Davies.
At stake is South Africa's membership in the African Growth and Opportunity Act, a US trade agreement designed to help African exporters.
"We look forward to a strengthening of relations, not just to going back to where they were," Mr Davies told reporters.
"We have succeeded in achieving a balance in maintaining the trade opening with the US and the animal health in South Africa," he said
Mr Davies said Pretoria was keen to meet outstanding requirements on beef exports to South Africa, and that discussions with Washington were ongoing.
Eliminating barriers to US trade and investment is one of the criteria for membership of AGOA, which was renewed earlier last year and provides duty-free access to goods from sub-Saharan African countries.
South Africa exported US$176 million in agricultural products to the United States under AGOA in 2014 and potential lost benefits are estimated to total $4 million to $7 million.
South African products affected would include oranges, macadamia nuts, wine and citrus, US data shows.
But US Trade Representative Michael Froman said the United States still needed to ensure South Africans were able to purchase US poultry before confirming that South Africa could enjoy full trade benefits.
"The true test of our success will be based on the ability of South African consumers to buy American product in local stores," said Mr Froman.
US President Barack Obama said he would revoke the duty-free status of South African agricultural produce unless Pretoria took action by the end of last year loosened restrictions on American produce.
"We think we have cracked the deal," said South African Trade Minister Rob Davies.
At stake is South Africa's membership in the African Growth and Opportunity Act, a US trade agreement designed to help African exporters.
"We look forward to a strengthening of relations, not just to going back to where they were," Mr Davies told reporters.
"We have succeeded in achieving a balance in maintaining the trade opening with the US and the animal health in South Africa," he said
Mr Davies said Pretoria was keen to meet outstanding requirements on beef exports to South Africa, and that discussions with Washington were ongoing.
Eliminating barriers to US trade and investment is one of the criteria for membership of AGOA, which was renewed earlier last year and provides duty-free access to goods from sub-Saharan African countries.
South Africa exported US$176 million in agricultural products to the United States under AGOA in 2014 and potential lost benefits are estimated to total $4 million to $7 million.
South African products affected would include oranges, macadamia nuts, wine and citrus, US data shows.
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