In 2015, Barack Obama announced that he was planning to revoke the duty-free status of South African agricultural goods under AGOA, when SA banned US poultry imports after an outbreak of bird flu

So, what exactly is the purpose of AGOA & Global Trade Deals in general?

The most common misconception about Trade deals is that they are about trade, that they're there to help countries that may not have the resources to easily offer certain products to their consumers. That's not exactly true. Historically, here's how they came about...

What we know as 'free trade' today and is comprised of many bilateral (between 2 countries) & multilateral (involving multiple countries) deals, started in a UN Monetary and Financial Conference in the town of Bretton Woods in the U.S in1944. Again, this was not about trade...

The main concern of the attendees at the Bretton Woods meeting was world peace. They figured that if they could get countries tied up in deals that have them dependent on one another, it would make them think twice before going to war

The main reason for introduction of World Trade Agreements was simply to create a world economy that "fosters and necessitates world peace". That's how they came about the concept of economic interdependence

In 1948 many countries signed up for the General Agreement on Tarrifs and Trade (GATT) whence they agreed to substantially reduce quotas and tariffs. That is how Globalisation and multinational corporations came about

Then in 1986, there was another conference in Uruguay where the GATT was effectively expanded further into textiles, agriculture, services, intellectual property, investment policy etc). The World Trade Organisation was born

The WTO now meant these trade agreements would supercede and override local laws of any country that signs up to them. So, when the U.S wants to sell SA diseased chicken, it doesn't matter what the Department of Health in SA says. SA is bound by the deal, or else!

For the first time in human history, a foreign company could come into a country to do business and if that country changes or amends a law which the company feels cuts into its profits, they could approach an international body to successfully sue the host government

Essentially, the citizens of any signatory country vote for and elect toothless governments, which have little control over their domestic laws on the environment, labour, health etc.

Today when we talk about 'trade' we mean how a foreign pharmaceutical company can come into a country and manufacture drugs within that country's borders while holding decades long patents which prevent local companies from doing the same

Or how a fast food multinational can resist and go ahead and sue the government if it attempts to change the health laws around preparation or content of food. There will be consequences for that country

This is because when the WTO rules were made there was no consideration of how they would affect poor countries. For instance:

In Lesotho, the world Bank funded Netcare to establish a Private-Public Partnership hospital in Lesotho. This ONE hospital used up 50% of the entire country's healthcare budget, taking money away from rural clinics, while giving a 25% return on investment to Netcare

The WTO has aided the U.S to entrench it's mercantile policies to maximise its exports and minimise imports. Further promoting American imperialism. In other words, the 'benefits' of being a part of these deals are simply too little to justify participation for poor countries