There’s been no news about whether an Agoa renewal will include an extension of the large US quota of dumped chicken that comes into South Africa every year free of anti-dumping duties.
The quota was forced on South Africa at the last renewal talks in 2015. It was raised at the last minute as a make-or-break issue and, because of the substantial economic benefits Agoa brought to other South African industries, the poultry industry had to “take one for the team” as an executive put it.
US bone-in portions such as leg quarters had been subject to anti-dumping duties of R9.40/kg since 2000. The quota freed most US imports from those duties.
The quota started off in 2016 at 65 000 tonnes, and rose to 71 000 tonnes last year. Because of the spread of bird flu in the US, the quota has not been filled for the past three years. Nevertheless, the US has become the largest supplier of bone-in chicken portions to South Africa – all of it dumped, but free of penalties because of the Agoa agreement.
The quota hurts the local poultry industry, and producers would like to see it ended. Bad news for chicken farmers is that one of the leaders in the US team is Senator Chris Coons of Delaware – and it was the same Senator Coons who led the drive to get the quota instituted in 2015.
Coons tried to get this week’s Agoa Forum moved away from South Africa because of its apparent bias towards Russia. He lost that battle (or was it just a political power play?). But, with an election due in the US next year, he may not be in a mood to cut American chicken producers out of a lucrative market he opened for them.
