A one-year extension of America’s AGOA trade deal with African countries has been signed into law by President Donald Trump. Unless there have been any textual changes, the 12-month renewal will include the huge quota of US chicken that South Africa has to accept without implementing the anti-dumping duties that should apply.
The quota, currently 72 000 tonnes annually, was insisted on by US senators as a condition of the last AGOA renewal in 2015. And, even if South Africa is not readmitted to AGOA, the quota is likely to remain.
Indications are that South African negotiators have offered a permanent duty-free quota to US officials as they seek a trade deal that lowers the current 30% tariffs the US is charging on imports of South African products.
AGOA has benefited South Africa’s manufacturing, automotive and fruit industries, but this has come at significant cost to the country’s poultry producers.
Opposition to the quota has been expressed repeatedly by the SA Poultry Association (SAPA). This concern was renewed at the end of last year when Astral, South Africa’s largest poultry producer, published its annual report.
“AGOA has long served as a strategic trade instrument for South Africa, granting duty-free access to the U.S. market for a range of exports,” commented Astral chair Theuns Eloff.
“However, the poultry sector has borne the brunt of concessions made under AGOA, particularly the allowance of up to 72 000 tons of U.S. bone-in chicken imports annually at preferential rates. These imports, often priced below market value, have significantly disrupted local production, leading to job losses and undermining investments made under the Poultry Sector Master Plan.
“While AGOA has supported broader export sectors such as automotive and citrus, the poultry industry continues to be used as a bargaining chip in trade negotiations, raising concerns about sustainability, transformation, and food security.
“With AGOA’s renewal uncertain beyond 2025, stakeholders are calling for greater transparency, reciprocal trade terms, and protective measures to ensure the long-term viability of South Africa’s domestic poultry industry,” Eloff stated.
