Sen. Coons Again Threatens Early AGOA Termination for South Africa, But Says Compromise Possible
There’s still time for the South African poultry industry to give more market access to U.S. exporters before Congress ultimately passes a ten-year African Growth and Opportunity Act, said Sen. Chris Coons, D-Del., on May 7. Coons recently said he may offer an amendment that would terminate South African beneficiary status after three years once the renewal hits the Senate floor (see 1504230067). He and Sen. Johnny Isakson, R-Ga., have for months battled to force removal of South African antidumping duties on U.S. poultry, but the lawmakers say South Africa’s poultry industry hasn’t budged (see 1503310069).
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AGOA renewal is embedded in the preferences packages that moved through committee in both the House and Senate in late April (see 1504240021). The legislation is expected to move alongside the other three trade bills in coming weeks, although details on legislative strategy at this point forward remains uncertain, lawmakers and trade experts say.
The South African Poultry Association and the U.S. Poultry and Egg Export Council continue to actively negotiate more market access for U.S. companies, said Coons. The two sides need to “find a responsible middle ground, such that Sen. Isakson and I do not need to move forward with our amendment,” said Coons. “But in the absence of real progress we will.” During the Senate Finance Committee’s April 22 markup on trade, Isakson chose not to offer the amendment that would end South Africa's beneficiary status after three years, instead proposing an out-of-cycle review for South Africa. That review, which was approved unanimously by the committee, would be conducted by the Office of the U.S. Trade Representative.
Coons said the South Africans are able to float a proposal that will appease U.S. industry and avert early AGOA termination in the coming weeks, the expected time period for legislative movement on trade. “They understand the timeline,” said Coons. “I’m optimistic.”