Sakeliga requests President Ramaphosa to delay enactment of bills jeopardising GSP and AGOA

28 October 2019

Business organisation Sakeliga today requested President Cyril Ramaphosa to delay enactment of two bills of Parliament potentially jeopardising 40% of South African exports to the United States. The relevant bills are the Copyright Amendment Bill (B13B-2017) and the Performer’s Protection Bill (B24B-2016).

Sakeliga’s letter follows the announcement on Friday by the Office of the United States Trade Representative (USTR) of a review of South Africa’s eligibility for tariff exemptions under the Generalized System of Preferences (GSP). To add to the gravity of the matter, South Africa’s GSP eligibility has implications also for its eligibility for duty free access to the US market under the African Growth and Opportunity Act (AGOA).

Said Piet le Roux, CEO of Sakeliga: “Of the $8 billion worth of exports from South Africa to the USA in 2017, $1,1 billion (14%) benefited from GSP exemptions, and $1,8 billion (23%) benefited from AGOA exemptions. Given that in recent years up to 40% of exports from South Africa to the United States of America benefited from GSP and AGOA tariff exemptions, the importance of careful consideration of the impact of enactment of the bills cannot be overstated.”
(See table and graph included below.)

In Sakeliga’s letter to the President, Le Roux wrote, “Given the significant implications of the GSP review, we request that you delay enactment of the Copyright Amendment Bill (B13B-2017) and the Performer’s Protection Bill (B24B-2016) to the extent allowed for in law. Alternatively, or additionally, we request that you exercise your prerogative to refer the two bills for constitutional review back to the National Assembly, which could aid you in your ultimate decision.

“We point to the possibility that, if you were to be required under law to sign these bills, thereby enacting them, you might consider determining their dates of commencement as far as possible into the future, in order to afford Parliament time to reconsider its position in light of developments and propose alternative or further bills, before the acts come into effect. Such a course of action would require diplomatic engagement with relevant USA representatives, in order to assure them that the delay is an appropriate mechanism to afford Parliament time to propose alternative legislation that addresses the GSP review concerns.”

The review of South Africa’s eligibility for GSP exemptions comes after acceptance by the USTR of a petition by the International Intellectual Property Alliance (IIPA). The IIPA cited as reasons for their petition inter alia the two bills currently awaiting the President’s signature, arguing that the bills fall short of international treaty obligations and GSP criteria.

Issued by Piet le Roux, CEO: Sakeliga, 28 October 2019