October 4, 2014

South Africa likely to allow US chicken imports without anti-dumping duties

In an effort to secure renewal of the Africa Growth and Opportunity Act (Agoa), poultry producers in South Africa are considering the granting of concessions on US chickens' access into the local market.

If some of their products are not permitted into the market, US poultry producers will attempt to obstruct the renewal of Agoa in the US Congress, according to a Business Day report. The act, which provides South Africa duty-free access to the US market, is due to expire on September 30, 2015.

The import of US bone-in chicken had been hampered by South Africa's anti-dumping duties. However, a specified quantity of chicken leg quarters may be allowed access, said Kevin Lovell, the CEO of South African Poultry Association.

In his visit to Washington in August, South Africa's trade and industry minister Rob Davies had discussions with the US poultry association concerning the quantities of US chicken that could enter South Africa without any anti-dumping duties.

"So far, the talks are going well. We are trying to find compromises. I am fairly comfortable we will find a solution," Lovell said.

"Any concessions we might make would be dependent on Agoa being renewed. If the renewal fails, then the concession will fall apart."