Share

US, South Africa in flap over chicken trade

Johannesburg - Two United States senators have threatened to try to block South Africa from a lucrative US-Africa trade agreement if Pretoria doesn't lift import duties on cheaper cuts of chicken.

South Africa has imposed "anti-dumping" tariffs since 2000 of above 100% on certain products derived from the chicken carcass.

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 America and US exporters could easily undercut local producers without the duties.

Discussing possible deal

"We strongly encourage you to pursue solutions expeditiously that guarantee market access for US poultry," US senators Chris Coons and Johnny Isakson said in an open letter addressed to President Jacob Zuma.

"We will need to reconsider the extension of duty preferences under AGOA for South Africa if this situation is not resolved," the senators warned, referring to the African Growth and Opportunity Act which regulates US-Africa trade.

Under the AGOA, which is up for renewal in late 2015, as much as 90% of South Africa's exports enter the United States duty-free.

South Africa Trade Minister Rob Davies said the two countries were discussing a possible deal whereby the US could export a capped volume of chicken in return for providing assistance with developing trade links.

"We have been attempting to find a solution to that matter through dialogue," said Davies.

Struggled to meet demand

Despite duties, US chicken exports to South Africa totalled $20.1m in 2013, according to the US census bureau's foreign trade division.

Since 1994, the popularity of chicken among South Africans has soared, while local producers, strained by the high cost of feed, fuel and electricity have struggled to meet demand.

South Africans consumed 1.9 million tons of chicken in 2012, more than any other African country.

The market is growing 8.5% a year, due mainly to the expanding black middle-class, according to research by Pretoria University, making it an increasingly attractive market for foreign exporters.

We live in a world where facts and fiction get blurred
Who we choose to trust can have a profound impact on our lives. Join thousands of devoted South Africans who look to News24 to bring them news they can trust every day. As we celebrate 25 years, become a News24 subscriber as we strive to keep you informed, inspired and empowered.
Join News24 today
heading
description
username
Show Comments ()
Rand - Dollar
18.94
-0.2%
Rand - Pound
23.91
-0.1%
Rand - Euro
20.43
+0.2%
Rand - Aus dollar
12.34
+0.1%
Rand - Yen
0.13
-0.2%
Platinum
910.50
+1.5%
Palladium
1,011.50
+1.0%
Gold
2,221.35
+1.2%
Silver
24.87
+0.9%
Brent-ruolie
86.09
-0.2%
Top 40
68,346
+1.0%
All Share
74,536
+0.8%
Resource 10
57,251
+2.8%
Industrial 25
103,936
+0.6%
Financial 15
16,502
-0.1%
All JSE data delayed by at least 15 minutes Iress logo
Company Snapshot
Editorial feedback and complaints

Contact the public editor with feedback for our journalists, complaints, queries or suggestions about articles on News24.

LEARN MORE
Government tenders

Find public sector tender opportunities in South Africa here.

Government tenders
This portal provides access to information on all tenders made by all public sector organisations in all spheres of government.
Browse tenders