AGRICULTURAL NEWS - The South African Poultry Association has asked the International Trade Administration Commission to impose an agricultural safeguard on some European chicken products that can enter the domestic market duty-free.
The application has drawn the ire of meat importers, who argue local poultry producers are acting against the best interests of consumers. If the application were approved, provisional safeguard tariff duties of 37% would be imposed on European Union (EU) chicken-in-bone portions.
In terms of the Trade, Development and Co-operation Agreement of 2004 between SA and the EU, chicken can be imported duty-free.
Last year, about 156,000 tonnes of EU bone-in-chicken portions valued at R2.3bn were sold on the South African market. Total imports amounted to 192,390 tonnes, showing that the bulk came from the EU. The duty-free regime kicked in in 2012, when 112,629 tonnes of EU bone-in chicken portions came into SA, compared to 62,271 tonnes the previous year.
In addition to this sharp increase in EU bone-in-chicken imports, local poultry producers have to contend with annual imports of 65,000 tonnes of US bone-in-chicken free of the antidumping duty that prevailed prior to the agreement reached this year between the US and SA.
Concluding this agreement was a condition for continued duty-free access for South African agricultural products to the US under the Africa Growth and Opportunity Act.
The SA-EU agreement provides that provisional agricultural safeguards can be imposed if the local industry can show that the imports are causing a "serious disturbance" to the local poultry market.
The application for a safeguard has to demonstrate that exceptional circumstances exist and be substantiated by facts relating to the rate and volume of the increase in imports and their harmful effect on local prices.
South African Poultry Association CEO Kevin Lovell said on Tuesday the local industry was facing low prices, dramatically rising input costs and a "relentless flood" of cheap imports.
In terms of the Trade, Development and Co-operation Agreement of 2004 between SA and the EU, chicken can be imported duty-free.
Last year, about 156,000 tonnes of EU bone-in-chicken portions valued at R2.3bn were sold on the South African market. Total imports amounted to 192,390 tonnes, showing that the bulk came from the EU. The duty-free regime kicked in in 2012, when 112,629 tonnes of EU bone-in chicken portions came into SA, compared to 62,271 tonnes the previous year.
In addition to this sharp increase in EU bone-in-chicken imports, local poultry producers have to contend with annual imports of 65,000 tonnes of US bone-in-chicken free of the antidumping duty that prevailed prior to the agreement reached this year between the US and SA.
Concluding this agreement was a condition for continued duty-free access for South African agricultural products to the US under the Africa Growth and Opportunity Act.
The SA-EU agreement provides that provisional agricultural safeguards can be imposed if the local industry can show that the imports are causing a "serious disturbance" to the local poultry market.
The application for a safeguard has to demonstrate that exceptional circumstances exist and be substantiated by facts relating to the rate and volume of the increase in imports and their harmful effect on local prices.
South African Poultry Association CEO Kevin Lovell said on Tuesday the local industry was facing low prices, dramatically rising input costs and a "relentless flood" of cheap imports.
