Chicken Deal with USA Will Benefit SA

8 June 2015

The poultry deal that was struck by representatives from South Africa and the United States of America in Paris, France, last week will enable South Africa to be fully included in the African Growth Opportunities Act (AGOA) over the next ten years. This is according to South Africa’s Special Envoy on AGOA, Ambassador Faizel Ismail.

Ambassador Ismail was addressing journalists in Cape Town today on the framework to restore market access into the South African market for the US bone-in chicken cuts. The agreement will secure the continued participation of South Africa in the reauthorised 2015 AGOA that is being extended by the US Congress for a further 10 years. According to the agreement, anti-dumping duties on a quota of 65 000 tonnes of US bone-in chicken imports into SA will be rebated 100% on an annual basis. The US bone-in chicken imports will still be liable for MFN (Most Favoured Nations) duties.

“This is a very important deal for South Africa that we are pleased to have been able to strike. The deal will not only enable South Africa to be fully included in AGOA, but more importantly, it means that numerous products such as the cars, base metals, chemicals, citrus, wines, macadamia nuts, amongst others will continue to enjoy the current preferences that they do under AGOA. They will also be able to invest and expand the enormous opportunities that are there in the US market,” said Ambassador Ismail.

He added that the agreement would open new opportunities for the historically disadvantaged individuals (HDIs). Discussions to determine the proportions that will go to existing and emerging importers will still be held by the dti and the Department of Agriculture, Forestry and Fisheries, he said. 
 
“We will from here onwards continue to build on the partnership that we have been able to build with the USA. This will strengthen and deepen the trade and investment relationship and we will use the opportunities that exist for us to take this relationship forward,” added Ambassador Ismail.

Speaking at the same media briefing, the Chief Executive Officer of the South African Poultry Association, Mr Kevin Lovell, said the industry would be working hard with government to minimise the impact of the import of US chicken on the South African poultry industry. Mr Lovell added that the US has also offered to provide some developmental assistance to the local poultry industry, in particular to HDIs. 

Statement issued by Sidwell Medupe, DTI Spokesperson, June 8 2015