With attention turned towards the renewal of the African Growth & Opportunity Act (AGOA), some have called for South Africa to be graduated from the duty preference program because of its well-developed infrastructure and labor force. Some have also raised the issue of certain non-tariff barriers said to exist that prevent U.S. companies from entering the South African market.
Recently, the U.S. International Trade Commission (USITC) held hearings and invited comments on AGOA in relation to four investigations covering: (1) AGOA trade and investment performance; (2) the economic effects of providing duty-free treatment to AGOA-eligible countries; (3) possible changes to AGOA’s rules of origin to promote regional integration and to increase exports to the U.S.; and 4) the impact of EU’s free trade agreement with South Africa on U.S. exports.
Many commented both in their oral testimony and in written comments on the importance of keeping South Africa as part of AGOA. First, the argument has been made that it would seriously hamper regional integration, critical to the establishment of value chains in Africa.
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