The Nation Newspaper

Tag: exports

  • Stakeholders seek improved pre-shipment inspection of agro exports

    Stakeholders in the agricultural sector have urged the Federal Government to support pre-shipment inspection agencies to reduce rejection of the nation’s agro exports.

    The list of goods subject to inspections and quality testing is extensive, including food and agricultural products.

    They said providing an enabling environment for pre-shipment inspections is one of the corrective measures which need to be taken for compliance as their  activities  take place, prior to shipment to  export destination. Pre-shipment inspections are allowable under the World Trade Organisation (WTO), as long as the requirements in the WTO Agreement on Pre-shipment Inspections are met – non-discrimination, transparency and review and appeals processes.

    Cocoa Association of Nigeria President, Mr. Sayina Riman, said such inspections  would ensure that the quality and safety of produce are in line with the domestic regulations of the importing country.

    He said  non-payment of of  pre-shipment inspection agencies  would affect  the growth of agro exports. He noted that the agencies have, since inception, demonstrated commitment and introduced sanity into non-oil export documentation in Nigeria. The Nigerian Export Supervision Scheme (NESS) has also contributed significantly to the nation’s earnings.

    Riman said a labourer deserved his wages. He called on the Minister of Finance to pay the agencies without further delay. “What we are seeing is not right. A labourer deserves his wages. The minister should pay these companies to forestall crisis in the non-oil sector, Riman. said.

    A Cocoa Consultant and Chief Executive of the Centre for Cocoa Development Initiatives, Mr. Robo Adhuze noted that an important aspect about agro produce to be exported is compulsory quality control and pre-shipment inspection.

    To this end, countries revert to pre-shipment inspections to guard their consumers and domestic producers against rejection at export destination due to capacity constraints relating to domestic standards and standard authorities and the lack of implementation of internationally accepted standards in the agric sector.

  • Agric commodities group targets $50b exports

    • Seeks Fed Govt support

    Federation of Agricultural Commodities Association of Nigeria (FACAN) President, Victor Iyama has said the group is ready to partner the Federal Government to increase export of commodities, including wheat, rice and vegetables, to enable the country hits $50 billion exports target.

    In an interview, he said the country has good stocks and the export of agricultural products should earn it valuable foreign exchange (forex).

    Iyama lamented that there were many agric commodities that Nigeria could export but that the country was only exporting a few.

    He called on the government and other stakeholders to step up action in the development of the agricultural commodities to meet international standards to be accepted by buyers across the world.

    To achieve this, he urged the government to implement its various export promotion schemes to promote exports.

    According to him, robust foreign trade, particularly exports, should be a key feature of the government’s economic growth strategy as it looks to the sector to provide jobs and revenue.

    Among the targeted new measures, he noted, should be helping exporters of higher-value products.

    According to him, FACAN was determined to transform farming, using the latest technologies to ensure the process is as productive.

    He said the association wants to empower more Nigerians to go into rice farming to boost domestic rice production to ensure self-sufficiency.

    Iyama said the move was also targeted at halting rice import, adding that it is frittering the country’s foreign exchange.

    He said it was wrong for the Central Bank of Nigeria (CBN) to determine how export proceeds were used, because the government does not finance private business.

  • Banks eye forex from agro exports

    Banks eye forex from agro exports

    Banks are encouraging their agribusiness customers to explore export opportunities in Asia and Europe to boost their revenue profiles, it has been gathered.

    They took the step because of the naira’s depreciation and drop in revenues following the withdrawal of government deposits. Foreign exchange earnings from agribusiness have grown substantially following the increase in export price and value of some products.

    Weaker naira exchange rate has  improved the competitiveness of agricultural commodity exporters.

    Chairman, Multimix Academy, Dr Obiora Madu, said exporters, especially agricultural producers,   were taking advantage of this. Since naira has weakened considerably against the currencies of some of the nation’s major trading partners, such as Europe, Asia  and  the United States (U.S), agricultural exports have become more competitive in these markets.

    Following this, finance service operators are offering what they claim are better deals in handling money transfers or providing currency brokering advice for a diverse new class of small to mid-sized farm products exporters.

    The situation is encouraged by the fact that government is insisting on agro exporters using banks for foreign currency transactions.

    With foreign exchange becoming  scarce, Madu said agro exports  were proving a to be a lifeline as  global trade volumes continue to rise, as well as earnings by farmers and  exporters.

    He noted that the growth of agric exports is one of the success stories  of the economic crisis. This has prompted banks to assemble teams focused on exporters, with small to medium exporters exploring global markets, Madu added.

    Addressing an agro export seminar in Lagos, Head, Structured Trade and Export Finance at Zenith Bank, Godwin Essien, said agricultural exports would continue to dominate the nation’s foreign trade given the structure of the economy.

    He said farm exports were growing in value as exporters rush to sell a wider choice of produce to growing economies.

    Essien emphasised the need for more efforts at increasing the value of exports as well as the volume.

    To facilitate this, he said the bank was providing agricultural businesses with one-stop banking services, including the issuance of letters of credit and loans denominated in foreign currencies.

    He said the bank had a good understanding of the needs of agro export businesses and would work with them to speed up funds flows to facilitate sales.

    He said the bank had made efforts to expand financing and designing products and services targeted at developing the sector.

    The National Publicity Secretary, National Cassava Association of Nigeria (NCAN), Mr Sotonye Anga, advised farmers and others in the agricultural sector, to position themselves to benefit from agro exports opportunities.

    He said exporters must be alert to take advantage of the growth in global demand for agro produce, stressing that Nigeria was struggling to be cost competitive, particularly against emerging produce exporting nations.

    He advised the government to collaborate with farmers or investors to promote crops that have strong export potential.

    The  exchange rate has had a volatile run in recent months with no signs of abetting.

  • U.K.’s non-oil exports to Nigeria may hit N2.93t

    The United Kingdom (U.K.) non-oil exports to Nigeria may hit £7.1 billion about (N2.93 trillion), by 2030, up from £1.9 billion, (about N795 billion) in 2014, a new report has said.

    The report titled: Seizing the opportunity: An economic assessment of key sectors of opportunity for U.K. business in Nigeria, estimated that U.K.’s Foreign Direct Investment (FDI) footprint in Nigeria could increase to £4.5billion from £1billion over the same period.

    The report, prepared by Pricewaterhouse Coopers (PwC), a professional services firm, on the request of the Foreign and Commonwealth (FCO) and released at the weekend in Lagos, highlighted the opportunities in Nigeria for U.K. businesses and provided guidance for trade and investment in Nigeria.

    Economics & Policy Leader at PwC UK, Dr. David Armstrong, and Chief Economist, PwC Nigeria, Dr. Andrew S. Nevin, said despite the challenges it faces, Nigeria remains an attractive medium term export and investment destination for the U.K.

    “At present, Nigeria is experiencing difficult macroeconomic conditions in an environment of ‘lower for longer’ oil prices. Government finances, the exchange rate and the inflation rate are all under significant adverse pressure. In these conditions, local and foreign businesses are less likely to take risks and invest,” the report said. ,

    It, however, said the fundamentals of the economy look very favourable for U.K. exporters and investors in the medium term due to three key factors which it identified as the scale of the economy and population, resource wealth and strategic geographical location.

    The report said, for instance, that Nigeria is the largest economy in Africa by size (£350billion) and population (177million) and these are expected to grow. “Between 2015 and 2030, we expect that Nigeria’s economy could grow at a rate of around five to seven per cent a year and the population could increase by 50 per cent,” it added.

    It cited Nigeria’s resource wealth – in addition to its oil reserves, noting that the country has fertile land and significant deposits of minerals such as tin, iron ore, coal, limestone, niobium, lead and zinc.

    Besides, with Nigeria’s strategic geographical location, the report said the country is well located to provide a gateway for trade expansion across the rest of Africa, and is also a natural hub for trade between America and Asia.

    The report, however, identified some critical success factors that would determine where U.K.’s non-oil export potential in Nigeria will be. One of them is the speed with which the Federal Government can overcome the adverse economic conditions and make progress on reforms, particularly in addressing corruption and infrastructure constraints.

    Other factors include Nigeria’s policies on trade openness to complement economic growth and provide more opportunities for U.K. exporters; U.K. competitiveness relative to its advanced economy rivals.

    “The opportunity will only materialise if it is proactively pursued, by the UK government to facilitate cooperation, and by UK businesses to build relationships and partners in Nigeria,” the report said.

    The report identified six goods and service which it said will offer UK businesses the greatest potential for growth. Under goods export, it listed machinery and transport equipment, manufactured goods and chemical and related products. The services export includes telecommunication and information services, transportation and travel, and intellectual property.

  • UK firm to certify agric exports

    A United Kingdom-based GLOBALGAP Licensed Farm Assurer, Best Produce International (UK) Limited, has launched a programme to facilitate the certification of agricultural exports under the Global Good Agricultural Practices (GLOBALGAP Standard).

    GLOBALGAP standard, formerly known as Eurepgap, is an integrated farm assurance process used in EU countries, United States and other parts of the international markets to serve as a business to business tool and it is a private commercial certification process for export of agricultural produce to EU countries. It is a producer export tool to suppling to top supermarkets throughout Europe and Walmart Group in USA.

    Best Produce International (UK) Limited, the GLOBALGAP Licensed Farm Assurer for Nigeria is collaborating with 3T Impex Consulting, Africa’s  trade and commerce consulting and training firm, to train and capacity build Nigerian farmers, farmers groups and exporters in Nigeria in GLOBALGAP certification processes to change the face of Nigerian agricultural exports.

    While several African countries boast of GLOBALGAP Certification of their agricultural produce for export, Nigeria oddly is the only major African market without such certification. There is no farmer or exporter in Nigeria with such certification whereas other African nations from the last count, could boast of at least 1,846 GLOBALGAP-certified companies in Kenya, 1,797 in South Africa, 355 in Cote d’Ivoire, 124 in Ghana, 9 in Cameroun, 146 in Burkina Faso and 671 companies in Egypt.

    The EU recently decided on a three-year extension of the ban on Nigeria’s dried beans. Nigeria has also witnessed continuously large rejection of its agricultural exports.

    The  GLOBALGAP Standard is designed as a practical tool to reassure consumers about how their food products are produced from farm to processing and to their tables.  It also offers small scale farmers and exporters who go through the certification process, the” passport” to export their produce to international markets.  It is a business-to-business tool that reassures the large scale retailers and consumers that their agricultural produce are produced in line with international standards.

    Managing Director, Best Produce International (UK) Limited, Mrs Patricia Obichukwu FRSA, said the certification of agricultural produce for exports  will enable producers and exporters to freely export their products directly to the EU supermarkets.

    Lead Consultant, 3T Impex Consulting, Mr. Bamidele Ayemibo, said the collaboration with Best Produce International (UK)would help to stem the tide of international rejection and enhance the competitiveness of Nigerian agricultural exports in the  global markets.

    Obichukwu noted that when Nigeria focuses on agriculture as the main plank of its economic diversification,  establishing local gap and, ultimately, Nigeria GAP at long run for the process of certification will create massive employment opportunities for the country, enhance foreign exchange generation, create wider access to regional and international markets, enhance the development of  businesses through advanced quality control management while ensuring food safety and food security for the country.

  • ‘Nigeria needs global products to grow non-oil exports’

    Nigerian businesses, exporters, government and other stakeholders should build a portfolio of unique, distinctively tasteful and original products that will appeal to international consumers, participants at a forum have said.

    At the conference organised by the Women in Education and Leadership Development Society in collaboration with the Business Women Group of the Nigerian Association of Chambers of Commerce, Industry, Mines and Agriculture (NACCIMA), in Lagos, the participants agreed on the need for  stakeholders to form a common front towards enhancing the competitiveness of Nigerian products in the global market.

    Managing Director, 3T Impex Trade Academy, Mr. Bamidele Ayemibo, who spoke on the strategies for “transiting from local production to global consumption”, said qualitative, tested and physically attractive products could open up the global market and related funding to small and medium enterprises (SMEs).

    Ayemibo, who runs one of Africa’s top five trade consulting firms, recently returned from a United Kingdom (UK) tour that included marketing of some Nigerian-made snacks, including plantain chips, potato chips, corn meal (Kokoro), locusts beans spices (Iru), pap (from maize and Guinea corn), groundnut cake (Kulikuli), pineapple snacks, mango snacks, fruits and nut mix and coated peanuts, said small-scale manufacturers in Nigeria who have good quality products but need more market and funding to scale-up and grow their businesses stand better chance of success in the global market if the manufacturers and other stakeholders address the entire value-chain of the local-to-global transition, including good preparation, competitive product, seamless and cost-effective process, adequate problem-resolution mechanisms and projective response approach that take into consideration other possibilities.

    He pointed out that exporting Nigerian products for the consumption of Nigerians in Diaspora would not qualify as real exporting business, noting that a product is not global because it is abroad unless other nationals are patronising it.

    Ayemibo urged the government to provide incentives that could enhance Nigerian exports, including provision of amenable finance at the lowest possible cost, setting up a free laboratory that could confirm the standards of products, pre-export incentives, such as payment of freight charges to destination and leading efforts to establish private public partnership outfits that could provide consulting services to existing and prospective exporters.

    He advised exporters to invest in continuous upgrade of their products in line with international standards and changing tastes in order to remain relevant and also to avoid the problems of litigation that could come with poor standards and misinformation.

    “If we want to create enduring wealth for our children, create extensive wealth for the country and create everlasting wealth for the continent of Africa, then all hands must be on the deck to promote the transition from local production to global production,” Ayemibo added.

  • Govt exports 328,897mbs of crude

    The Federal Government exported 328, 897 million barrels of crude oil in the last four years, the Nigerian Extractive Industrial Transparency Initiative (NEITI) has said.

    The agency,  in a paper  titled:  ‘’NNPC offshore processing and swap arrangements: Revenue loss to the nation’’ obtained at the weekend, showed that the Federal Government allocated 655,235million barrels of crude during the period under review, of which it exported 328, 897 million barrels to generate revenues for the country.

    The paper, which gives an account of the number of volumes of crude oil allocated per  year, volumes delivered to the refineries for processing into petrol, kerosene, diesel and other finished products, volumes supplied for offshore processing, and those exchanged between Nigeria and her partners abroad, said the government supplied 134, 387 million barrels of crude oil to the refineries during the period.

    In the paper presented by  former NEITI Acting Executive Secretary, Dr Orji Ogbonaya Orji, the government allocated more crude oil for exports since it derives more than 70 per cent of its earnings from oil exports.

    Giving a breakdown of crude oil dealings during the period under review, NEITI said the country allocated 161,914 million of crude oil in 2009; 166, 523millions in 2010; 164,455million in 2011; and 162,343millions in 2012.

    It said the government exported 142, 500 million barrels of crude oil in 2009; 97, 792 million barrels in 2010; 39, 341 million barrels in 2011 and 49, 215 million barrels in 2012.

    The paper said the government delivered 19, 363 million barrels to the refineries in 2009; 34, 703 million barrels in 2010; 48, 394 million barrels in 2011 and 34, 927 million barrels in 2012.

    Others include crude oil offshore processing-27,556 million barrels of crude oil in 2010; 26, 688 million barrels of crude oil 2011; and 22, 755 million barrels of crude oil in 2012.

    Also, the paper recalled that the idea of swapping crude oil for refined products began in the mid 80s, adding that the idea was introduced to enable NNPC access funds to meet its obligations in the Joint Venture Agreements (JVAs)

    The House of Representatives Ad Hoc Committee  conducted investigation into the Refined Product Exchange Agreement/Crude Oil Swap between the Nigerian National Petroleum Corporation (NNPC)/ Product Pipeline Marketing Company (PPMC).

    Also, the Committee had planned to invite the former Minister of Petroleum Resources, Mrs Deazani Alison-Madueke for explanation on the issue. The invitation was to enable the former Oil Minister provide   explanations into crude oil swap deals contract extensions granted Duke Oil Company  Incorporated and Trafigura B.V without valid contracts.

  • How shipment delays cripple agric exports

    How shipment delays cripple agric exports

    Exporters of agricultural products are losing millions of naira to delays in shipment. To remain competitive on the world stage, stakeholders are asking shipping companies to address agro export transit challenges. DANIEL ESSIET reports.

    The past year was tough  for agricultural products shippers – no thanks to delays in shipment.

    One group that was badly hit was cashew exporters, many of who could not get their produce shipped in time to Vietnam and India through the seaports.

    President, National Cashew Association of Nigeria (NCAN), Pastor Tola Faseru, recalled that last year, cashew exports at the seaports  were  delayed  for  weeks — if not months.

    Faseru added that cashew cargo were left sitting, undelivered at the ports for months. He recalled that there were cases cashew cargo, remained in transit for 90 days.

    By the time the produce arrived their destinations, Faseru said they had lost their usefulness. Ultimately, that means farmers and exporters receive a lower price for their produce or had them rejected by importers. He criticised the shipping lines for making cargoes undergo longer waits before moving them abroad.

    As they prepare to harvest cashew and ship to their destinations in Asia and Europe, he maintained that shippers have dramatically lowered their expectations for the shipping lines. They fear that residual delays plaguing the shipping system will worsen as farmers and exporters prepare cashew for export from next month. He called the transit issue affecting cashew shippers a “serious situation.”

    To this end, he announced that the association was going to keep an eye on the situation and put pressure on shipping companies to make sure that they are ready, willing and able to handle what is a very profitable export crop.

    Consequently, he said they were planning, by taking steps to minimise disruptions where possible, by moving more of the commodity at the same time by containers. If shipments fail to arrive their destinations on time this year, Faseru said the shipping lines will be held responsible and made to pay for such delays.

    Faseru expects robust demand from India and Vietnam this year.This year, he said the group intends  to export at least 6,400 40-feet containers of cashew. The aim is to increase it to 20,000 40-feet containers by 2020. Faseru said  the government and all stakeholders in the cashew value chain were making efforts to raise the production from 180,000 metric tonnes yearly to 500,000 metric tonnes by 2020.

    The country is targeting a yearly income of over $700 million (N138 billion) from the export of cashew nuts by that year.

    According to him, “Cashew is Nigeria’s second largest non-oil foreign exchange earner, with a production volume of 180,000MT and an annual income of $250 million.” The crop has been earmarked as one of the five agro-industrial products among 13 products for diversification and it accounts for 200,000 jobs, he added.

    Some exporters suffered so much losses having to withdrawn their shipments from being exports because they stayed longer in the ports. One of them was the Country Manager, 3F Nigeria IPEX Limited, Karamvir Singh,who  said his organisation had many containers of cashew withdrawn from the ports when the shipping line couldn’t move them in time.

    Shipping delays, according to him, cost agricultural  shippers  million in lost revenue between February through August  and there is the potential for more  losses this year, if they  are not able to move the produce in time to their destinations in Asia.

    Fortunately, the demand for cashew is rising because of increasing consumption in Europe.

    Besides, there is  supply shortage in Asia.

    This is an opportunity for exporters from Nigeria to make money.

    However, he fears that without better transit service, exporters won’t be able to get their commodities to market. The risk is that importers of cashew, including India, Vietnam and Europe, could turn to producers in other countries. Asia producers traditionally have had a competitive advantage over Nigeria because of the reliability and cost-effectiveness of their freight network.

    But the shipping firms, however, assured agriculture shippers they have taken steps to prepare for such shipments, citing knowledge gained from last year’s delays.

    On the state of the industry, the General Manager, Pil Nigeria, Mr. Vernaert Mathias, however, said many shipping firms were going through difficult times and were taking hard measures just to remain afloat. While carriers are, mulling cut costs, he said they faced the challenge of delivering the service their customers demanded.

    Since productivity is a crucial metric, he noted that shipping firms are deploying bigger ships in to reap the benefits of economies of scale.

    He explained, however that the small channels provided by Nigeria’s ports made it difficult for shipping companies to deploy large vessels. In his view, however, the Commercial Manager, Transcap, Mr Paulinus Effiong maintained that addressing the causes of transit delay was important since cashew exporters are facing a lot of challenges.

    The most prominent of which is the difficulty of transferring products to export markets in an appropriate period.

    According to him, clearance delays seriously affect the competitiveness of exporters.

    He has called on the industry and regulators to work together in order to avoid any future crises by ensuring better scenario planning and that sufficient supply chain contingency strategies are in place.

    Commercial Manager, CMA COM Delmas Nigeria Limited, Mr Augustine Obagidi observed that export difficulties have to be considered in a larger framework from the moment the goods leave the exporter premises until their shipment. Obagidi said the delays in moving cashew shipments are rippling through supply chains. In the context of the ports in Apapa, he explained, the disadvantage multiplies, in that agro exporters also suffer from delays and extra costs due to Apapa road traffic and trucking.

    According to him, the congestion on the ports’ link roads has been significant. A large factor in the current backups is high numbers in trucks and cargo volume currently going to the ports.

    Trucks, he explained, are stalled for hours in a miles-long line to gain entry to the terminal at Apapa.

    He said several truck drivers are fed up with the congestion. Many truckers are independent operators, meaning they only make money when they complete a delivery. These days, they’re lucky to make two hauls a day, compared with four or five several years ago. The resulting shortage is contributing to increased freight costs.

    He warned about the impact on shipping and the economy if there is insufficient road and rail infrastructure, port capacity and systems in place. He explained that shipping lines cannot be blamed for the congestion happening on the link roads.

    According to him, there is the need for cashew exporters, shipping firms and terminal operators to work more together to the problem. Export Manager, Safmarine, Maureen Okojie said shippers are also part of the problem.

    Okojie said last minutes changes made by shippers on the final destination of the cargoes sometimes make things difficult for the shipping companies due to planned schedules.

    Once the schedule has been published, she explained that it is difficult to change it because of the need to ensure reliability. Shippers, according to her, are not justified to complain in such instances, taking into account the need to ensure reliability in vessel schedule performance.

    Though it is understandable that shippers try to take advantage of  when it suits them operationally and financially, Okojie noted  scheduling is most times sacrosanct  since it would costs them operational efficiency or money to change direction that has been scheduled in the interest of shippers.

    For this reason, she advised cashew exporters to indicate the popular destinations they will like their cargo delivers ahead of time.

    Stakeholders reiterated that the crisis at the oil market has shown the importance of having efficient exporting sectors. Therefore, authorities need to introduce new rules requiring customs to clear the goods aimed to be exported. International customers, they noted, would likely to prefer more secure suppliers, which will affect the competitiveness of the cashew industry.

    Exporters complained about bureaucratic corruption and red tape. Operators also complained about demands for irregular fees.

  • Expert urges produce audit to avert exports rejection

    Chairman Board of Trustees, Mycotoxicology Society of Nigeria, Prof Dele Fapohunda,  has  urged  the  government to  improve  on exports  standards and ensure commodities  meets European Union (EU) requirements for import.

    He said the rejection of some of Nigeria’s exported food items by the EU is not only detrimental to the agricultural sector, but is also counterproductive to the economy.

    He was addressing a workshop organised by the Raw Materials Research and Development Council in Abuja.

    He said beans, sesame seeds, melon seeds, dried fish and meat, peanut chips and palm oil from Nigeria have been banned by the EU till June, next year, which the reason given were aflatoxins and pesticides at unacceptable levels.

    According to him, plans to make the agricultural sector a major revenue earner for the country may suffer a setback if produce from the industry are being rejected by foreign countries.

    He said local exporters were at the risk of suffering losses since imports are significantly protected by the high standards of the major food suppliers and retailers, and the regulatory controls which deter the importation of seriously contaminated material.

    Stringent mycotoxin standards on exported food crops, he noted, countries must export their best-quality foods while keeping contaminated foods away.

    For Nigeria to make remarkable agricultural progress, he said further action is required to address new and emerging contamination challenges.

    Going forward, he said Nigeria needs to improve its policy environment, to enable investments that will allow help exporters to adapt to the opportunities created by rising export demand.

    As increasing agricultural exports is now an integral part of the government’s sector-development strategy, Fapohunda said the government should help exporters to streamline exports with the ever-changing food quality and safety norms of major importing countries. According to him, there  have been concerns over pesticide residues in horticultural produce.

    As result, he  said  the  food industry has to deal with various intrinsic issues impacting food quality and safety across the supply chain.

    To further harness the potential of the agriculture and food industry, he said robust policy strategies on food quality and safety  are  imperative to improve standards and secure greater market access of food products in the developed markets.

  • U.S, South Africa trade dispute to cost $1.7b in exports

    South Africa is fighting to retain duty-free access for exports to the U.S. worth as much as $1.7 billion a year in a dispute that pits farmers in the two nations against each other.

    The U.S. is reviewing South Africa’s status as a full beneficiary of a preferential trade pact known as the African Growth and Opportunity Act, which eliminates import levies on more than 7,000 products ranging from textiles to manufactured items. AGOA, as the accord is known, was renewed in June for another 10 years, benefiting 39 African nations.

    At the heart of the dispute are American chicken and cattle farmers who want South Africa’s government to remove trade restrictions imposed to protect the local industry from a flood of cheaper imports. While Trade and Industry Minister Rob Davies said on Sept. 29 that South Africa had done all it can to retain access to AGOA, the U.S. government says there are still major unresolved issues.

    “South Africa needs to take concrete steps towards eliminating barriers to U.S. trade and investment, a key criterion to be eligible for AGOA trade benefits,” Trevor Kincaid, a spokesman for the office of the U.S. Trade Representative in Washington, said in an e-mailed response to questions at the weekend.  “Ultimately, South Africa’s AGOA eligibility is in South Africa’s hands.”

    No sooner had the two countries reached an agreement over American chicken imports to South Africa in June, a new dispute emerged relating to import restrictions following an outbreak of avian flu in the U.S. Veterinary experts from the two nations met last month to discuss health concerns around the shipment of chicken, beef and pork to South Africa.

    The risk of South Africa losing its AGOA benefit is not “based so much on the realistic assessment of the value of the South Africa market, it’s more about politics in America,” Christopher Wood, a researcher in the economic diplomacy department at the South African Institute of International Affairs, said by phone from Johannesburg. “The chicken caucus within the U.S. Congress is particularly strong.”

    Kevin Lovell, chief executive officer of the South African Poultry Association, said by phone on Wednesday he expects the U.S. government and farming industry to “adopt a more equitable and reasonable approach.” The U.S. embassy in Pretoria said on Sept. 16 that eliminating barriers on American poultry and beef exports will address concerns raised by the industry.

    AGOA has enabled South Africa to more than double its exports to the U.S. since 2000. Shipments under AGOA accounted for more than a fifth of the nation’s exports to the U.S. last year, according to data compiled by the Tralac Trade Law Centre, based in Stellenbosch, near Cape Town.

    Agriculture products and vehicles, such as the BMW 3-Series manufactured at Bayerische Motoren Werke AG’s plant at Rosslyn outside the capital, Pretoria, benefit the most from the trade accord. Transportation equipment made up 75 per cent of South Africa’s $1.7 billion shipments under AGOA to the U.S. in 2014, the Tralac Trade Law Centre’s data shows.

    To remain a beneficiary of AGOA, African countries are required to, among other things, eliminate barriers to U.S. trade and investment, operate a market-based economy, protect workers’ rights and implement economic policies to reduce poverty.

    South Africa is accused of restricting U.S. businesses with plans to cap foreign ownership of private-security companies at 49 percent. If the law is passed, ADT Corp., based in Boca Raton, Florida, will be required to relinquish control of its South African unit.

    African nations that no longer qualify as beneficiaries under AGOA include the Democratic Republic of Congo, Gambia and South Sudan. Swaziland lost its access in January because of an alleged lack of protection of workers’ rights, while Zimbabwe and Sudan aren’t eligible.

    “South Africa is the key player under AGOA and neither side would want to see South Africa graduated out of the program — the economic and political fallout would be big,” Eckart Naumann, an independent economist and associate at the Trade Law Centre, said in an e-mailed response to questions. “There is a decent chance that South Africa may just scrape through.”