It was announced on Tuesday that greater market access for American poultry is one of the trump cards in South Africa’s negotiations with that country to conclude a trade agreement. This was also news for the South African Poultry Association (SAPA).
By Michelle van der Spuy, senior journalist at African Farming and Landbouweekblad
The Department of Trade, Industry and Competition announced this news on Tuesday in a statement, which also indicated that South Africa’s market for blueberries from the United States would be opened.
South Africa is one of about 130 countries that are scrambling to negotiate a trade agreement with the US before the increased import tariffs come into effect on 1 August.
According to the statement, the simplification of market access for US poultry imports to South Africa at the 2016 tariff rate quota rate will unlock about $91 billion (R1 629 billion) in trade.
SAPA considers this statement to be unclear, and says although it would have a significant impact on the local poultry industry, no consultation was held with the industry.
SAPA met with Parks Tau, Minister of Trade, Industry and Competition, on 16 May this year and asked that he enter into discussions with the industry before any trade deals are made. It was also requested that the US import quota for chicken meat, which was previously 65 000 tonnes and currently stands at 72 000 tonnes, be suspended because it provides for imports to South Africa that are exempt from the anti-dumping tariffs. So far, the industry has not received any response to these requests.
Also read: ‘SA committed to finalising trade agreement’ – Tau
Local Chicken Producers Undermined
In the meantime, South African poultry exporters have no access to the US market, while the import quota that benefits America is maintained. SAPA says the industry is in the dark about the content and implications of the framework agreement, as well as whether there are any benefits for South African poultry exporters in exchange for America’s continued concessions. The poultry industry is therefore asking for clarity on the content and undertakings announced in Tuesday’s statement.
It also requests that the US import quota for chicken meat be urgently suspended, as it undermines local chicken producers and is no longer justifiable in the absence of fair trade.
“The industry emphasises its willingness to have a constructive dialogue with the Department of Trade, Industry and Competition and calls on the Minister to adhere to the principles of transparency and consultation in all trade negotiations that affect local sectors.”
