Business
South Africa’s AGOA status at risk due to trade dispute with the U.S.
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 countries 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 are not 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 Center, said in an e-mailed response to questions. “There is a decent chance that South Africa may just scrape through.”
Source: Bloomberg Business
