South Africa Exports to U.S. at Risk Pending Program Review

(Bloomberg) --

South African exports to the U.S. are at risk pending a review of the country’s eligibility for a preferential-trade program.

The U.S. Trade Representative lodged the review of the nation’s duty-free access to the U.S market under the so-called Generalized System of Preferences, its oldest and largest trade-preference program for the world’s poorest economies, due to concerns with copyright protection and enforcement, it said in a statement Friday. Trade in goods and services between South Africa and the U.S. was $18.9 billion in 2018, with $2.4 billion being shipments from South Africa, according to U.S. government data.

Failure to comply with U.S. eligibility criteria could see South Africa lose preferential market access under the GSP and the African Growth and Opportunity Act, which together allow most sub-Saharan African countries duty-free access to the U.S. market for more than 6,000 products.

“During the review, there will be no change to GSP participation or to benefits under the African Growth and Opportunity Act,” said Robert Mearkle, a spokesman for the U.S. Embassy in South Africa. The South African government will be given an opportunity to participate in the review process, he said.

To contact the reporter on this story: Prinesha Naidoo in Johannesburg at pnaidoo7@bloomberg.net

To contact the editors responsible for this story: Rene Vollgraaff at rvollgraaff@bloomberg.net, Ana Monteiro, Michael Gunn

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