ISAKSON, COONS CALL ON SOUTH AFRICA TO FULFILL OBLIGATIONS TO RESUME IMPORT OF U.S. POULTRY

Urge South African president to resolve remaining issues to allow U.S. poultry industry to again participate in South African market

Monday, September 14, 2015

WASHINGTON – U.S. Senators Johnny Isakson, R-Ga., and Chris Coons, D-Del., Friday urged South African President Jacob Zuma to act expeditiously to resolve remaining elements of the U.S.-South Africa agreement reached in Paris earlier this year and allow U.S. poultry exports to South Africa to resume. 

A settlement was reached in the longstanding poultry dispute between the United States and South Africa on June 8, 2015, during negotiations in Paris led by the United States Trade Representative (USTR), the Department of State, U.S. Ambassador to South Africa Patrick Gaspard and trade experts from industry. The agreement was welcome news for the entire U.S. poultry industry, including the large poultry operations in both senators’ home states – Georgia and Delaware. 

In a letter to the South African president, Isakson and Coons point to a number of unresolved issues that are hindering the successful implementation of the Paris agreement. 

“Our understanding is that there are two processes that need to be completed in South Africa to implement the Paris agreement,” the senators wrote. “First, a rebate facility must be created to legally exempt the annual quota amount from antidumping duties. Second, the rules for allocation and administration of the quota must be developed through a transparent legal process.…We are also disappointed to learn that here has been no progress in addressing South Africa’s complete ban on U.S. poultry due to avian influenza.” 

The pair expressed their disappointment in South Africa’s slow response since an agreement was reached. “Without these issues being addressed and in place,” the senators wrote,“U.S. companies cannot ship product, regardless of the other terms of the Paris agreement being reached.”

Senators Isakson and Coons, both members of the Senate Foreign Relations Committee, have pressured the South African government for over a year to end the antidumping duties. Most recently, the senators secured language in the reauthorization of the African Growth and Opportunity Act (AGOA) requiring the USTR to conduct a review of South Africa’s trade practices, specifically antidumping duties on U.S. poultry. The pair pointed to the ongoing review by the USTR as another reason for swift action to be taken by South Africa to complete those essential processes. 

“As you are well aware, a review of South Africa’s eligibility under the African Growth and Opportunity Act (AGOA) is presently underway,” Senators Isakson and Coons continued.“You also know that it is crucially important to both of us that there be a successful and expeditious resolution of this issue so that the U.S. poultry industry can begin again to participate in the South African market.”

Under the current agreement, if not further delayed, American poultry products are expected to enter the South African market before the end of 2015. 

Isakson and Coons are the co-chairs of the Senate Chicken Caucus. Both their states have large poultry industries and are major exporters of poultry. The poultry industry annually contributes over $15.1 billion to the Georgia economy, including farmers, processing, and allied industries. 

Text of the letter:

September 11, 2015

President Jacob Zuma
Pretoria
South Africa
0001

Dear Mr. President:

We were greatly encouraged by Trade Minister Rob Davies' announcement on June 8th that a settlement had been reached on the longstanding poultry dispute between our countries during meetings in Paris. As you are aware, we represent two of the most important poultry producing states in the United States and this has been an extremely important issue for our constituents. At the same time, we have both been long time advocates for increased trade and engagement with South Africa. We look forward to successful implementation of the Paris agreement so the United States and South Africa can at last leave this trade dispute behind .

Minister Davies announced that the agreement allows an annual quota of 65,000 metric tons of bone-in poultry portions to enter South Africa free of any antidumping duties, and that there is a formula that permits the quota to grow as South African poultry production and consumption grow. We also understand that the U.S. industry has pledged to provide private assistance for education and training of historically disadvantaged individuals in South Africa. We are excited that our industry is committed to assist in South Africa's important transitional process, and look forward to learning about the specific programs that are developed.

Our understanding is that there are two processes that need to be completed in South Africa to implement the Paris agreement. First, a rebate facility must be created to legally exempt the annual quota amount from antidumping duties. Second, the rules for allocation and administration of the quota must be developed through a transparent legal process. We have been told that Ambassador Faizel Ismail pledged during the Paris meetings that the quota would be administered fairly and transparently so that the quota will be filled each year.

Although the agreement was announced three months ago, we understand that neither of these essential processes have been initiated in South Africa. We are also disappointed to learn that there has been no progress in addressing South Africa's complete ban on U.S. poultry due to avian influenza. Itis important that the South African government follow World Organization for Animal Health (OIE) guidelines and implement a policy of regionalization for highly pathogenic avian influenza (HPAl), along with the final adoption of language for export certificates. Without these issues being addressed and in place, U.S. companies cannot ship product, regardless of the other terms of the Paris agreement being reached.

We respectfully request that you strongly encourage your industry and your government to complete these processes to implement the Paris agreement and adopt a policy of regionalization for HPAl as quickly as possible. As you are well aware, a review of South Africa's eligibility under the African Growth and Opportunity Act (AGOA) is presently underway. You also know that it is crucially important to both of us that there be a successful and expeditious resolution of this issue so that the U.S. poultry industry can begin again to participate in the South African market. We thank you in advance for your consideration and interest in a quick resolution of this matter .

Sincerely,

Johnny Isakson

United States Senator

Christopher A. Coons

United States Senator