The AGOA’s Out of Cycle Review

Abstract

The African Growth and Opportunity Act (AGOA) is the cornerstone of the United States of America’s (US) trade policy towards the sub- Saharan Africa countries. South Africa has been an AGOA beneficiary since 2000.The objective with this article is to discuss the out-of- cycle review and its implications for South Africa. The article utilises secondary sources of data from previous research, and grounds the  theoretical framework in preferential trade agreements. The AGOA agreement’s potential loss through the out-of-cycle review has  significant implications for South Africa. The study’s main finding is that South Africa is at risk of losing its AGOA preferential status due  to Section 105 of the AGOA Act (Monitoring and review of eligibility under Generalized System of Preferences), the automatic rules and  discretionary powers of the Generalised System of Preferences (GSP).