US welcomes SA poultry deal

Stone Mountain -The  US Poultry & Egg Export Council and the national chicken council say they are looking forward to working with South Africa on implementing a new agreement regarding chicken products and a renewed import agreement.

The US exports about 65 000 tons of chickens to SA a year and according to the agreement SA will end punitive duties on US chickens.

South Africa imposes "anti-dumping" duties of more than 100% on certain chicken products and industry groups said removing those import barriers opened a market which had been closed for the last 15 years.

Much stronger position

Trade and Industry Minister Rob Davies said earlier that the deal "was within the tolerance of SA's poultry industry and was something we can all live with.”

The agreement, which would see the United States emerge as one of the top poultry exporters to Africa's most advanced economy, should help smooth the passage of the African Growth and Opportunity Act (AGOA) currently before American lawmakers.

“We believe we have placed ourselves in a much stronger position," Davies said.

AGOA is a non-reciprocal trade preference initiative providing duty-free treatment to US imports of certain products from eligible sub-Saharan African (SSA) countries.

READ:  Value of Agoa is diminishing, says Rob Davies

One of the signature dishes of South Africa's poor townships is a stew called "walkie talkies," made from chicken heads and feet. These parts are not popular in the United States and US exporters could easily undercut local producers without the duties.

After a meeting in Paris, US and SA also agreed on actions to resolve issues relating to poultry, pork and beef exports, an American trade representative said.

South Africans consume more chicken than people in any other African country. Local producers have struggled to keep up with rising demand.