Cape Town - Trade and Industry Minister Rob Davies says the United States will initially export 65 000 tons a year of poultry to South Africa in a new deal that will impact local production.
Davies said in a telephone conversation from Paris, where the deal was concluded, that the deal was "within the tolerance of the (South African poultry) industry and is something we can all live with."
The US senate finance committee in April passed an amendment which aimed to hold South Africa accountable within the African Growth and Opportunity Act (Agoa) trade pact as the two countries struggled to reach a settlement on poultry tonnage.
Areas of concern
In a statement to Fin24, US senator Johnny Isakson expressed his satisfaction that the “legislation contains provisions that would allow the US Trade Representative to be responsive and flexible in its approach to addressing areas of concern by conducting out-of-cycle reviews and when necessary, having the authority to suspend, limit or withdraw benefits for any beneficiary country not in eligibility compliance.”
READ: US amendment turns up heat in 'chicken war' with SA
Said Isakson: “I believe passionately in Agoa’s value and support its long-term renewal, but I believe it unfair and inappropriate that the country that benefits from the law the most - South Africa - continues to maintain unreasonable tariffs on American poultry.”
Isakson is an influential senator from Georgia who has threatened to block the renewal of Agoa, which has major benefits for participating African countries and South Africa in particular.
A few days ago the Food and Allied Workers Union (Fawu) said that increased poultry tonnages shipped from the US under the Agoa agreement will negatively affect job retention negatively.
“It is clear that the much higher ‘dumped’ poultry will negatively affect job retention and may cause major downward pressure on wages. It will also push certain local firms to the edge, and some may close shop,” Fawu said in a statement.
In his budget speech in Parliament on May 21, Davies said that the US Senate passed a bill for the African Growth and Opportunity Act to be extended for a period of 10 years and for SA to be included.
READ: Value of Agoa is diminishing, says Rob Davies
South Africa has imposed anti-dumping tariffs of above 100% since 2000 on certain products derived from a chicken carcass. SA’s rationale for imposing duties is the fact that, due to the local market, all cuts of the chicken are valued equally.