The anti-dumping duties imposed by South Africa on US chicken imports in 1999 remain centre stage in South Africa’s bid to have AGOA extended for another 15 years before expiring later this year. The USA Poultry and Egg Export Council (USAPEEC) has unquestionably made South Africa’s continued benefit under AGOA dependent on whether the South African poultry industry is willing to re-open the market to US poultry products. Rather than using the remedies provided in the WTO, the Americans appear to have patiently waited to take advantage of their well-devised lobby efforts in the AGOA talks.  Well played America.

What are the Americans asking for?

USAPEEC is demanding elimination of the anti-dumping duty on US chicken and exemption of normal duties on US chicken. These demands have not been well received by the domestic poultry industry.

What is SAPA putting on the table?

SAPA is proposing a volume-based quota that will be exempted from anti-dumping duties. The quota will be calculated based on the volume that America used to export to SACU before anti-dumping duties kicked in. In addition a percentage volume for market growth is being added. An agreement on this is yet to be reached.  How exactly these volume quotas will be managed and allocated is a very interesting question to ponder…

Challenges

The road is challenging for both parties as they fail to agree on basic issues. Negotiation timelines are yet to be agreed upon between the two poultry associations, but time is rapidly running out for a decision on South Africa’s inclusion in the next iteration of AGOA.  The Americans would appear to be holding all the cards though, with South Africa unlikely to walk away from AGOA for the sake of an anti-dumping duty on chicken.  I don’t think we have too much longer to see what the final outcome will be.