Identifying Export Opportunities for SACU in the US Market

The report finds that while a free trade agreement (FTA) could provide some duty-free access for products like peaches, manganese, wool, and animal hair, the most significant benefits would likely come from relaxing rules of origin for textiles and clothing and restricting US anti-dumping duties on iron and steel. It notes that a high proportion of SACU exports already face zero Most-Favoured Nation (MFN) tariffs, and many available preferences under AGOA are under-utilised due to rules of origin or lack of importer awareness. The report emphasizes the need for SACU to diversify exports beyond apparel, especially following the end of the Multifibre Arrangement (MFA) quotas in 2004.

• The potential advantages of extending market access for goods through an FTA are limited in scope, with the primary benefits lying in rules of origin and the administration of US trade remedies rather than tariff negotiations.
• Iron and steel goods are the most valuable SACU exports not covered by AGOA or GSP; although MFN tariffs are low, exports are hindered by the application or threat of anti-dumping duties.
• The most valuable products for which an extension of duty-free access would be beneficial are manganese, peaches, wool, and animal hair, as these face significant MFN tariffs and are excluded from both AGOA and GSP.
• A significant portion of SACU exports to the US do not require preferences because they already face a zero MFN tariff; in 2004, more than 59% of exports fell into this category.
• AGOA has significantly stimulated clothing exports, which grew from $322 million in 2000 to $875 million in 2004, with more than half originating from Lesotho.
• There is a notable under-utilisation of available preferences; for example, in 2004, $114 million worth of South African exports had available preferences that were either not claimed or only partially claimed.
• The success of apparel exports from Botswana, Lesotho, Namibia, and Swaziland (BLNS) is heavily dependent on less onerous rules of origin for less developed countries, making them vulnerable to the post-Multifibre Arrangement (MFA) competitive environment and the rise of Chinese exports.
• The growth of certain agricultural exports under AGOA may reflect trade diversion rather than creation, as seen with South African prepared pears where US growth was offset by a decline in exports to the EU.

APA

Netshitomboni, N., Stevens, C., & Kennan, J. (2006). Identifying Export Opportunities for SACU in the US Market. South African Institute of International Affairs. https://saiia.org.za/wp-content/uploads/2013/06/9-Trade-Report_No_9withchanges14Mar06.pdf

Chicago

Netshitomboni, Nnzeni, Christopher Stevens, and Jane Kennan. Identifying Export Opportunities for SACU in the US Market. South African Institute of International Affairs, 2006. https://saiia.org.za/wp-content/uploads/2013/06/9-Trade-Report_No_9withchanges14Mar06.pdf.

Wikipedia

{{cite report |last1=Netshitomboni |first1=Nnzeni |last2=Stevens |first2=Christopher |last3=Kennan |first3=Jane |title=Identifying Export Opportunities for SACU in the US Market |publisher=South African Institute of International Affairs |date=2006 |url=https://saiia.org.za/wp-content/uploads/2013/06/9-Trade-Report_No_9withchanges14Mar06.pdf |access-date=17 August 2026 |via=Climate Insights Directory}}

BibTeX

@techreport{netshitomboni2006identifying, author = {Netshitomboni, Nnzeni and Stevens, Christopher and Kennan, Jane}, title = {{Identifying Export Opportunities for SACU in the US Market}}, institution = {South African Institute of International Affairs}, year = {2006}, url = {https://saiia.org.za/wp-content/uploads/2013/06/9-Trade-Report_No_9withchanges14Mar06.pdf}, urldate = {2026-08-17}, note = {Indexed by Climate Insights Directory} }