South Africa ready to make concessions on US poultry imports
"We are prepared to request a volume concession from the [South Africa] International Trade Administration Commission (ITAC)" at a level similar to that allowed in 2000, South African Poultry Association (SAPA) CEO Kevin Lovell told GlobalMeatNews, adding that there will be an "allowance for growth in the import market of bone-in portions" from the US, although final details were under discussion.
The two countries are disputing South Africa’s poultry import quota and duties, which the US alleges is blocking its exports and South Africa says are needed to safeguard its domestic sector.
USA Poultry and Egg Export Council (USAPEEC) president James H Sumner said if South Africa insists on limiting access under a quota system, "then it would certainly be fair to permit US poultry to participate in the South African market – at least to the extent it did before restrictions were imposed in 2000."
He argued that, between 1997 and 1999, South African data indicated American poultry exports to SA were about 49,000 tonnes (t) annually on average, while South African domestic consumption of poultry was approximately 740,000t. Sumner added: "South Africa’s consumption has grown, in the interim, to more than 1.8 million tonnes annually." So more American exports, said Sumner, "would not harm the South African domestic industry at all". South Africa currently imports about 175,000t of poultry meat annually from all sources.
He called South Africa’s insistence on protecting its poultry sector with high duties "ironic" when it enjoys duty free access to the US market: "If the US similarly insisted that it had to protect its auto, textile or citrus industries, the tens of thousands of jobs that were created in South Africa because of AGOA preferential access would never have occurred," Sumner said.
However, Lovell branded the US approach as "simply an abuse of power – power that they have and abuse that they seem to think is acceptable." But he accepted AGOA was useful to South Africa, helping about 21% of its exports to the US, earning US$46m at 2014 volume levels, although the automotive sector snaps up US$32m of that.
Indeed, liberalisation of the poultry sector should be limited, so that South Africa does not sacrifice its industry. Lovell said: "We are not able to export to most markets, so local production needs to be sold locally. Our total market is limited by our high unemployment levels and restricted disposable income levels." He also questioned that, if the US was so upset about South African quotas and duties, why had it not made them subject to a World Trade Organisation dispute?
