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Cape Town - A "sweet spot" is being sought to resolve differences over poultry issues between the United States and South Africa to smooth the way to a renewal of the African Growth and Opportunities Act (Agoa) trade deal, the South African government reported on Friday.
Trade and Industry Minister Rob Davies and senior trade official and special envoy on Agoa Faizel Ismail addressed a news conference at Parliament on Friday, saying it was in the interest of both the United States and South Africa to renew the Agoa deal.
While acknowledging that the issue was "far bigger than chicken", Davies said, this did not mean that South Africa would dismiss the interests of the large poultry industry and its thousands of jobs.
The bottom line is that the United States opposes a South African anti-dumping measure of chicken legs, feet and wings. South Africa has attempted to compromise by imposing a quota just above the level at which the anti-dumping measures would be employed.
As a way of resolving the impasse - ahead of talks on the renewal of Agoa, which expires in September after 15 years - the Department of Trade and Industry has brought the poultry associations of the United States and South Africa together to find a resolution.
Davies and Ismail are heading to the United States next week to engage in discussions with the US authorities on trade matters, at which the Agoa agreement would be a key issue.
The Agoa deal - first implemented under Bill Clinton's presidency - has to be rubber stamped by the US Congress and Davies said the matter "could go to the wire". However, South Africa is hopeful of an early resolution to differences and a renewal of the deal.
He said that Agoa contributed to growing trade ties between the US and South Africa as well as the southern African region. Last year SA exported R69bn of goods to the US, "many of them value-added products", and the US had exported R71bn of goods. "There is a small deficit in their favour," said Davies.
Agoa provides trade preferences for quota and duty-free entry into the United States for certain goods. It expands the tariff benefits under the Generalised System of Preferences programme. South Africa aims for a renewal for a further 15 years.
Ismail reported that South African trade has benefited from Agoa in the automotive, chemicals, clothing and apparel as well as poultry sectors.
