Recent shifts in the trade relationship between South Africa and the United States, including tariff measures and AGOA developments, are creating uncertainty for the poultry sector – especially around rebate mechanisms linked to antidumping duties.
By Izaak Breitenbach, CEO of Broiler Organisation SAPA
The trade relationship between South Africa and the United States has recently come under renewed scrutiny, particularly regarding the African Growth and Opportunity Act (AGOA) and tariff measures affecting South African exports. These developments have significant implications for the local poultry sector and raise questions about the continuation of rebate mechanisms linked to AGOA benefits.
The AGOA quota applicable to South African poultry imports expired in September 2025. At the time, the United States, under President Donald Trump, had introduced a 30% tariff on South African goods. This placed South African exporters at a disadvantage compared with competitors who were not subject to similar trade barriers.
The tariff also had implications for the rebate system connected to antidumping duties. South Africa imposes antidumping duties on chicken imports from the United States, but under the AGOA framework certain imports qualify for rebates. A clause in the agreement states that if South Africa loses AGOA benefits, the associated rebate should automatically lapse.
When the 30% tariff was introduced, it effectively undermined South Africa’s AGOA benefits. In terms of the agreement, the antidumping rebate should therefore have fallen away. However, the Minister of Trade, Industry and Competition, Parks Tau, chose not to suspend the issuing of rebate permits while negotiations with the United States were ongoing. The intention was to avoid the perception of a retaliatory “knee-jerk” response that might complicate diplomatic discussions.
This decision proved controversial within the poultry industry. Industry representatives argued that continuing to issue rebate permits allowed imports to benefit from concessions while South Africa received no reciprocal advantage, thereby disadvantaging local producers. SAPA requested that the minister halt the permits. At the same time, the International Trade Administration Commission of South Africa (ITAC) invited importers to apply for additional permits, increasing tensions.
Although AGOA has since been reinstated for another three years, a new 10% tariff on South African goods continues to raise legal and economic questions. SAPA has therefore approached the courts for clarification on whether the AGOA-linked rebate on dumped chicken from the US should still apply under these conditions.
The outcome will be important for the poultry industry and for the broader framework governing South Africa’s trade relations with the United States.
Source: Poultry Bulletin, Issue 31, April/May 2026
(Official magazine of the South African Poultry Association)
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