South Africa Maintains Anti-Dumping Duties on US Chicken Imports

South Africa retains anti-dumping duties on US chicken imports, protecting its domestic poultry industry from unfair competition. This decision has significant trade implications between the two countries.

Bijay Laxmi
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South Africa Maintains Anti-Dumping Duties on US Chicken Imports

South Africa Maintains Anti-Dumping Duties on US Chicken Imports

South Africa's trade minister, Ebrahim Patel, has approved a recommendation to maintain anti-dumping duties on frozen bone-in chicken portions originating from or imported from the United States. The decision follows an investigation conducted by the International Trade Administration Commission of South Africa (ITAC) that began in December 2022.

The ITAC concluded that the expiry of the duties on these poultry portions would likely lead to the continuation or recurrence of dumping and material injury to the chicken industry in the Southern African Customs Union. Based on this finding, the panel recommended to Minister Patel that the duties be maintained at a rate of R9.40 ($0.49) per kilogram.

The anti-dumping duties, first imposed in 2000, are aimed at protecting the domestic poultry industry in South Africa from unfair competition from cheaper US chicken imports. The United States had argued that the duties were no longer necessary, but the ITAC determined that removing them would still leave the domestic industry vulnerable to injury.

South Africa has rejected the US request to remove the duties, which have been reviewed periodically since their initial implementation. The move is intended to support the local poultry sector and ensure a level playing field for South African producers.

Why this matters: The decision to maintain anti-dumping duties on US chicken imports has significant implications for trade relations between South Africa and the United States. It also highlights the ongoing challenges faced by domestic industries in competing with cheaper imported goods.

The South African Poultry Association (SAPA) welcomed the decision, with a spokesperson stating, "This is a positive outcome for the local poultry industry, which has been struggling to compete with the influx of cheap imported chicken. The maintenance of the anti-dumping duties will provide much-needed relief and support for our farmers and producers."

Key Takeaways

  • South Africa retains anti-dumping duties on US frozen bone-in chicken imports.
  • ITAC investigation found duties necessary to prevent injury to domestic poultry industry.
  • Duties first imposed in 2000, aimed at protecting local poultry sector from cheaper US imports.
  • Decision supports local poultry producers, maintains level playing field against imported goods.
  • SAPA welcomes the decision, stating it provides relief and support for local farmers and producers.