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    South Africa Asks The United States Not To Review South Africa'S Trade Preferences

    2020/2/11 12:21:00 0

    TradeConcessionsMeasures

    As the US trade representative will hold a public hearing in recent years to review South Africa's duty free entry into the US market, the general preferential tariff system (GSP), the South African government will remind the US president, trump, that the US government's time to review trade preferences for South Africa may be too early, not only to endanger the risk of up to US $2 billion 400 million in export trade, but also to harm the two economies of the United States.

    On behalf of 3200 American companies, including the manufacturers and distributors of books, movies, music and video games, the International Intellectual Property Alliance (IIPA) has complained that South Africa's copyright amendments, performers and protection amendments have not been able to provide adequate and effective protection for copyright in the United States. However, in order to obtain the treatment of GSP universal preferential treatment system, the country must comply with the standards set by the US Congress, including the extent of effective protection of intellectual property rights in the country. Therefore, if the GSP censorship result is negated, South Africa is about to lose the preferential market entry treatment (quota free tariff free) of GSP and the African Growth and Opportunity Act (AGOA), which will affect most Saharan African countries to sell more than 7000 products to the US market. This will exacerbate the economic downturn in South Africa.

    According to us statistics, in 2018, bilateral trade in goods and services between South Africa and the United States amounted to US $18 billion 900 million (about 276 billion South African), of which about 2 billion 400 million US dollars benefited from the two preferential schemes of GSP and AGOA. In terms of industry sector, the agricultural sector in South Africa will be most severely affected. South Africa is the second largest source of imported American oranges, and South Africa also sells many fresh produce such as grapes, litchi and avocado. If these industries are affected, it will endanger as many as 300 thousand jobs. Moreover, although only 15% of the US $4 billion 750 million in mineral and metal products sold and sold in South Africa in 2019 will be subject to trade preferences, it will indirectly affect the cost of manufacturing in the US.

    In response to the hearsay, U.S. embassy officials in South Africa said the preferential treatment of South Africa's general preferential tariff system GSP or the African Growth Act AGOA will not change.

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