18 Apr South Africa: Increased quota for United States frozen bone-in chicken
South Africa: Increased quota for United States frozen bone-in chicken
The annual quota for frozen bone-in cuts of the species Gallus Domesticus originating in, or imported from, the United States (US) has been increased from 71,290 tonnes to 71,632 tonnes, with retrospective effect from 1 April 2022.
The decision to again increase the quota of frozen chicken that is allowed to be imported into South Africa from the US may be seen by some to be a compromise that must be made for South Africa to continue to benefit from the African Growth and Opportunity Act (AGOA) program. However, it will hopefully also assist in bringing the price of chicken down for poverty-stricken households. It is also hoped that the South African Customs Union, and South Africa in particular, will soon be able to conclude a reciprocal, mutually beneficial trade agreement with the US that further addresses the challenges around this issue, especially considering that AGOA’s preferential stipulations are set to expire again in 2025.
During negotiations for the renewal of AGOA’s preferential treatment for South Africa in 2015, it was agreed that an annual quota of US bone-in chicken could be imported into South Africa from the US, without US exporters having to pay anti-dumping duties normally applicable on these goods.
The US is one of the leading poultry exporters to South Africa, in addition to Brazil and the European Union. In 2022, the International Trade Administration Commission of South Africa (ITAC) made a determination in the investigation into the alleged dumping of frozen bone-in portions of chicken imported from Brazil, Denmark, Ireland, Poland and Spain. ITAC concluded its investigation and recommended to the South African Minister of Trade & Industry that anti-dumping duties be imposed on these countries. However, although the Minister accepted ITAC’s recommendation, the decision was made to suspend the imposition of anti-dumping duties on these countries for a period of 12 months, as published in the Government Gazette on 1 August 2022. The Minister noted that the decision was based on the current rapid rise in food prices in the South African Customs Union (SACU) market and globally, and the significant impact this has, especially on the poor. Also considered was the impact the imposition of the anti-dumping duties may have on the price of chicken.
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