AGOA, Africa and Agriculture

This report by the South African Institute of International Affairs evaluates the impact of the African Growth and Opportunity Act (AGOA) on South African agricultural exports to the US. It argues that while AGOA has facilitated growth in specific niche agricultural products and clothing, its overall impact is limited by pre-existing low tariffs, complex rules of origin, and significant non-tariff barriers such as US agricultural subsidies and restrictive standards.

• The overall impact of AGOA on South African exports is limited because most goods already faced very low tariffs prior to the act. For example, the import tariff on South African bottled wine was only 1.7% before AGOA, meaning its elimination is unlikely to significantly change US consumer preferences.
• AGOA has driven significant growth in specific South African agricultural exports, particularly in fruit and fruit juices. Products such as pears, avocados, pimientos, citrus juice, and grape juice have seen "phenomenal growth," although the report notes this may be due to trade diversion from other markets, such as the EU, rather than the creation of new trade.
• The clothing sector represents the greatest potential for trade creation under AGOA, but benefits are severely restricted by complex rules of origin. It is estimated that AGOA exports would be five times larger if the US applied the less stringent multifiber agreement (MFA) rules of origin.
• Significant non-tariff barriers continue to hinder South African agricultural exports. These include high US producer subsidies—with the 2002 Farm Bill providing up to $180 billion in support—and restrictive standards, such as the ban on fruit infected with citrus black spot (CBS), which costs South African exporters approximately 4% of total revenues to comply with.
• The report identifies a risk in the unilateral nature of AGOA, as the US President can suspend duty-free treatment or deem countries ineligible. This uncertainty can deter investment, and the success of certain products, like canned pears, has already led to US lobbying for their removal from the AGOA list.
• In potential reciprocal trade negotiations between the Southern African Customs Union (SACU) and the US, the US is likely to prioritize the liberalization of the South African automotive sector, where it faces significant tariff barriers and trade diversion in favor of the EU.

APA

Stern, M., & Netshitomboni, N. (2004). AGOA, Africa and Agriculture. South African Institute of International Affairs. https://saiia.org.za/wp-content/uploads/2013/06/3-reportno3a.pdf

Chicago

Stern, Matthew, and Nnzeni Netshitomboni. AGOA, Africa and Agriculture. South African Institute of International Affairs, 2004. https://saiia.org.za/wp-content/uploads/2013/06/3-reportno3a.pdf.

Wikipedia

{{cite report |last1=Stern |first1=Matthew |last2=Netshitomboni |first2=Nnzeni |title=AGOA, Africa and Agriculture |publisher=South African Institute of International Affairs |date=February 2004 |url=https://saiia.org.za/wp-content/uploads/2013/06/3-reportno3a.pdf |access-date=17 August 2026 |via=Climate Insights Directory}}

BibTeX

@techreport{stern2004agoa, author = {Stern, Matthew and Netshitomboni, Nnzeni}, title = {{AGOA, Africa and Agriculture}}, institution = {South African Institute of International Affairs}, year = {2004}, month = feb, url = {https://saiia.org.za/wp-content/uploads/2013/06/3-reportno3a.pdf}, urldate = {2026-08-17}, note = {Indexed by Climate Insights Directory} }