November 4, 2013

 

South Africa seeks for poultry import duty on three European countries

 

 

As part of attempts to halt the dumping of frozen bone-in chicken portions in countries belonging to the Southern African Customs Union, the poultry industry of South Africa is asking the government to impose an anti-dumping duty of 91% on Germany and the Netherlands, along with a similar duty of 58% on the UK.

 

South Africa does not impose duties on members of the EU because of a trade and co-operation agreement signed in 2001.

 

The push by the South African Poultry Association for anti-dumping duties on the three European countries comes after the September increase in import tariffs on five categories of imported chicken products, aimed mainly at imports from Brazil.

 

Trade and Industry Minister Rob Davies announced last month that after this tariff increase, importers from South Africa and exporters from Brazil and Argentina had predicted a shift towards EU chicken products.

 

Trade, competition and applied economics firm Econex said in its October research note that chicken imports from Germany had grown 487% from 2008 until last year. Imports from the Netherlands had risen 397% and those from the UK had risen 401% in the same period.

 

Of the five categories on which tariffs were increased, bone-in cuts constitutes the largest imported category, with the Netherlands being the largest exporter to South Africa in this category, Econex said.

 

The International Trade Administration Commission announced last week that it would be investigating anti-dumping claims against the three trading partners since the South African Poultry Association presented it with information that indicates a prima facie case of harm to the local industry.

 

XA International Trade Advisors director Donald MacKay said if the poultry industry succeeds with its application, this would go a long way in sealing the local market to chicken imports.

 

Econex said in its research note that the average annual increase in the production and consumption of chicken in South Africa was 6.2% and 7.1%, respectively, from 2001 to 2010.

 

Prior to the latest tariff increase, growth forecasts for the chicken industry from last year to 2021 had indicated an annual average production increase of 2.8% and a consumption increase of 4.5%.

 

Econex described the imposition of higher tariffs as "protectionist policies", saying the costs to consumers were large and fell disproportionately on the poor. Its research showed that the poorest 10% of South Africans spend 15% of their household income on chicken.