Discussions about general duties come as South African poultry producers are already facing the likelihood of a 72 000-tonne annual quota of American chicken imports free of the anti-dumping duties that should apply.
The quota started at 65 000 tonnes and has risen steadily since 2015 when it was imposed as a US condition for renewing South Africa’s other trade benefits under the Africa Growth and Opportunity Act (AGOA). It should fall away, as those other benefits have been lost in a wave of new US tariffs.
AGOA may in any case be history.
The AGOA legislation is up for renewal again this month, and there has been speculation that the Trump administration is going to cut it back or, more likely, end it. Tariffs have in any case negated the preferential access to US markets that African countries used to enjoy.
However, the quota idea remains alive. South Africa’s trade negotiators have offered a 72 000-tonne quota of duty-free chicken imports, apparently not tied to AGOA, as they seek a reduction of the 30% tariffs now hindering South African exports to the US.
The AGOA quota has freed nearly all US chicken imports of the R9.40/kg anti-dumping duty that has been in force since 2000. General duties, and particularly the 62% charged on bone-in cuts such as leg quarters, have still applied. The Trump administration wants those gone, too.
Recent import volumes from the US have been low, as bird flu swept through the country. That can change, and if US production revives while South Africa has given duty-free access to all US chicken imports, the local industry will be in big trouble.
No anti-dumping duties, no general tariffs. No wonder South African poultry producers are watching nervously – from the sidelines because they’ve so far been denied a seat the negotiating table.
