PRETORIA, South Africa (Reuters) — South Africa has resolved a dispute with the United States over farm exports, says the country’s trade ministry.
The agreement will allow agricultural goods to be exported to the U.S. without penalties.
U.S. president Barack Obama said Nov. 5 that he would revoke the duty free status of South African agricultural produce unless Pretoria took action by the end of last year to loosen restrictions on U.S. farm exports.
South African trade minister Rob Davies said “we think we have cracked the deal” and felt South Africa would remain in the African Growth and Opportunity Act. However, they were waiting for confirmation from the U.S.
At stake is South Africa’s membership in AGOA, a U.S. trade agreement designed to help African exporters.
South Africa exported $176 million in agricultural products to the U.S. under AGOA in 2014, and potential lost benefits are estimated to be $4 to $7 million.
