Abstract:
AGOA is a US trade policy which defines and underpins the trade and investment relations between the US
and sub-Saharan Africa. Essentially, AGOA extends duty free treatment to exports from eligible sub Saharan
African countries. These preferences are aimed at promoting sub-Saharan African export earnings and
stimulating their economic growth by giving them improved access to the US market. South Africa is one the
few sub-Saharan African countries with a high utilization rate of the AGOA preferences, and has substantially
benefited from AGOA. However, in order to ensure compliance with the eligibility requirements, an eligible
sub-Saharan African country is subjected to constant, on-going surveillance and monitoring through the out of
cycle review mechanism. Importantly, the US President has the prerogative to determine whether a sub-
Saharan African country is eligible or remains eligible for the AGOA preferential treatment.
The strict eligibility requirements and out of cycle review mechanism as well as the unilateral nature of
AGOA deprive it of the necessary stability, certainty and predictability. Importantly, the out of cycle review
mechanism has a chilling effect on trade policies of eligible sub-Saharan African countries. This is particularly
true in respect of South Africa, whose trade policy is the primary subject of the study. Notwithstanding the
economic benefits, the disadvantages and or risks associated with AGOA overwhelm same. The disadvantages
and or risks are amply demonstrated by the recent development in which South Africa was compelled to
remove Anti-Dumping duties and Sanitary and Phyto-Sanitary measures it had validly imposed on US poultry
in return for retaining AGOA preferences. Consequently, it is contended that AGOA is not a non-reciprocal
preferential scheme that it purports to be. Instead, it is de facto reciprocal or has reverse preferences embedded
in it. This study therefore argues that South Africa is entitled to impose Anti-Dumping duties and the Sanitary
and Phyo-Sanitary measures, provided that specific requirements are met and that the measures imposed by
South Africa on US poultry are legal under the General Agreement on Tariffs and Trade (GATT) 1994 and the
WTO law as long as the procedural and substantive requirements have been fulfilled. Consequently, the
consistency thereof can only be tested using the WTO dispute settlement mechanism. Further, the study
highlights the implications of removing the above-mentioned measures for South Africa's trade policy and
explores various alternative trade arrangements which South Africa and other sub-Saharan African countries
may pursue in order to ensure or secure a stable, transparent, reciprocal trade relation with the US.
