South Africa considering concessions for US chicken

To help secure the renewal of the Africa Growth and Opportunity Act (Agoa), South African poultry producers are considering granting concessions on the access of US chickens into the local market.

US poultry producers have threatened to block the renewal of the act in the US Congress if South Africa refuses to allow some of their products to enter the domestic market.

Anti-dumping duties will remain in place on the import of US bone-in chicken portions, but there was scope to allow a specified quantity of chicken leg quarters to enter the country, CEO of the South African Poultry Association Kevin Lovell said recently.

Agoa provides SA with duty-free access into the US and it is due to expire on September 30 next year. US President Barack Obama and the US administration both support the extension of the act and South Africa’s continued inclusion in it, but the ultimate decision is for the US Congress to take.

Lovell said the issue to be negotiated with the US poultry association was what quantities of US chicken could enter SA without the anti-dumping duties. “So far the talks are going well. We are trying to find compromises. I am fairly comfortable we will find a solution.”

Any decision would have to undergo administrative processes, which Lovell hoped would be concluded before the renewal of Agoa came before Congress.

“Any concessions we might make would be dependent on Agoa being renewed. If the renewal fails, then the concession will fall away.”

Source: Business Day Live