An assessment of the implications of agoa on the South African poultry industry

Abstract

As a signatory to the African Growth and Opportunity Act (AGOA) agreement, a preferential trade agreement (PTA) with the United States, South Africa derives several benefits. PTAs grant access to certain products from developing countries and, while the tariffs are sometimes not completely removed, the tariffs charged are far less than those imposed on countries that are not included in the trade agreement. There is strong evidence that PTAs increase trade and investment between member countries. South African exports of goods and services to the US under AGOA have increased by 104% since 2000. While PTAs seem to benefit developing countries at the aggregate level, not much is known about the winners and losers from preferential trade liberalisation at the level of the firm. This study assessed the PTA benefits of AGOA at the firm level within the South African poultry sector.