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RSA’s access to the USA market for agricultural products under AGOA

RSA’s access to the USA market for agricultural products under AGOA. TIPS Development Dialogue Tinashe Kapuya 17 September 2013. Outline. Introduction Background Emerging Market Access Issues Looking ahead Conclusion. Introduction. Status of Market Access Initiatives

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RSA’s access to the USA market for agricultural products under AGOA

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  1. RSA’s access to the USA market for agricultural products under AGOA TIPS Development Dialogue Tinashe Kapuya 17 September 2013

  2. Outline • Introduction • Background • Emerging Market Access Issues • Looking ahead • Conclusion

  3. Introduction • Status of Market Access Initiatives • Ambassador Rasool committed to drive a process of ensuring RSA benefits from a new AGOA promulgation (after 2015) • Research on the benefits of AGOA to RSA • Industry representatives meeting at various platforms to contribute to the discourse of AGOA and its advantages

  4. Background • TIPS study commissioned by dti touched on agro-processing, citrus,wines, among others • Stakeholders from wines, citrus and fruit canning contributed to the process • Views gathered were submitted to the dti, in consultation with Nedlac • Negotiations under away??

  5. RSA CITRUS EXPORT INDUSTRY

  6. Market Access Issues 1. Revision of the 24/22 day pre-treatment period • Industry has been working with both APHIS and DAFF towards the ratification of a standard operation procedure (SOP) • Delayed progress emanating from communication issues i.e. between DAFF and APHIS

  7. Market Access Issues 2. Access for Pest Free Places of Production (PFPP) in an Area of Low Pest Prevalence (ALPP) • All the necessary information has been supplied to APHIS 3. Expansion of aphis recognised PFA in the Western Cape • Again, all the necessary information has been supplied to APHIS

  8. Three Requests made • Divide the western cape province in two areas, each with its own running average • SA citrus fruit to enter the usa through the port in Houston – Texas, port in New Orleans - Louisiana and port in Miami – Florida • terminate the obligatory cutting of sa citrus fruit used to confirm successful completion of the cold treatment

  9. RSA WINE EXPORT INDUSTRY

  10. Market Access Issues • Lengthy delays in administrative process of clearing export shipments • Three layered excise tax regime – at national government, federal and county levels • Three tier system: SA exporter → USA importer (Distributor) → Wholesaler → Retailer

  11. Market Access Issues • Uncertainty • Margin Squeeze • Stiff competition from Chile, Argentina, Australia and EU countries, whose producers receive subsidies and other forms of government price support • Government support critical therefore critical in improving SA’s competitiveness

  12. Looking ahead • Engagements of DAFF and APHIS critically important in ensuring exporters are strategically placed to take advantage of AGOA • Renewal or non-renewal? • If renewed, what will SA’s place be in the future? • How can markets be better exploited?

  13. Thank you www.agbiz.co.za

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