South Africa's Poultry Industry Sacrificed to Secure Trade Deal with US

South Africa's poultry industry is again being made to bear the brunt of the country's efforts to secure a trade deal with the United States. The government has proposed increasing access to South African markets for US poultry producers, which would simplify US exports under the 2016 tariff rate quota and unlock approximately $91 million in trade. This move comes despite the poultry industry's concerns and a previous attempt in 2015 to exempt US chicken from anti-dumping duties. The industry is now facing the potential threat of 30% tariffs on all South African exports if the trade deal is not concluded.

Key Takeaways:

• The South African government has proposed increasing access to local markets for US poultry producers, which could expose the local industry to unfairly priced imports.
• The proposal would simplify US exports under the 2016 tariff rate quota, which has been repeatedly renewed despite the US importing chicken at unfairly low prices.
• The poultry industry has invested over R1.5 billion to increase production, but some new capacity remains idle due to a lack of government support in promoting domestic consumption and expanding export markets.
• The government has been pressured to offer concessions to the US to prevent 30% tariffs on South African exports, but this has come at the expense of the local poultry industry.
• The anti-dumping duties recommended by the trade regulator ITAC have been renewed since 2000 due to concerns over US imports being sold at unfairly low prices.
• The proposed deal would contravene international trade rules and the objectives of the poultry master plan, which aims to protect the local industry from unfairly priced imports.

Statistics:

• $91 million: The estimated trade benefit that could be unlocked by simplifying US poultry exports under the 2016 tariff rate quota.
• 30%: The tariffs that South African exports could face if the trade deal is not concluded.
• R1.5 billion: The amount invested by the poultry industry to increase production, with some new capacity remaining idle due to government inaction.
• 2016: The year the tariff rate quota was established, allowing for increased imports of US chicken.
• 2000: The year ITAC began recommending anti-dumping duties on US chicken imports due to concerns over unfairly low prices.

Sources:

• "Government proposes to open up South Africa's poultry market to US imports" by Michele Jewaskiewitz, published in CityPress.
• "South Africa's poultry industry fights for survival" by Ashlin Matthews, published in The Mail & Guardian.