The import of chicken from the US was initially prevented by South Africa as they claimed the US was 'dumping' chicken below the cost of production for local producers, threatening the South African poultry industry.
After talks in Paris to address outstanding agricultural trade issues related to South Africa’s African Growth and Opportunity Act (AGOA) eligibility, the two industries agreed on the framework to provide for renewed market access for US bone-in chicken into the South African market. The Governments also agreed to a firm set of actions this month to resolve the remaining sanitary issues related to poultry, pork, and beef.
The framework provides for the return of exports to South Africa of US bone-in chicken after the two governments complete necessary implementation steps. The South African government will implement the framework following a public consultation process.
While both sides recognise it may take some time for the South African government to complete its regulatory process, both sides said they are committed to expedite processes and resume shipments of US chicken as quickly as possible.
Both Governments and industries have committed to further engagements on development issues that will enhance production in South Africa as well as participation of Historically Disadvantaged Individuals (HDIs) into the poultry industry.
The South African Minister of Trade and Industry, Dr Rob Davies who was in Paris, met with the delegations. He said: “The framework agreed by the two industries facilitates South Africa’s continued participation in AGOA and is a commendable effort by the poultry industry in the interest of the South African economy.”
The US' ambassador to South Africa Patrick Gaspard stated: “The Paris meetings made significant progress. The United States and South Africa can work together to address trade issues, demonstrating that US trade tools can effectively deliver results for the United States.
"I am happy with the progress towards a mutually agreed solution that we made, and look forward to our working together to resolve bilateral trade problems.”
The two countries said that the agreement will allow their governments to set a positive path forward for the countries’ trade and investment relationship building two-way US-South Africa trade, including under AGOA, and using tools such as the US-South Africa Trade and Investment Framework Agreement (TIFA) to address the outstanding issues.
