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The South African Meat Imports and Exporters Association (Amie) has welcomed national government’s decision to suspend anti-dumping duties on chicken imported from Brazil, Spain, Poland, Ireland and Denmark for 12 months.
Trade, Industry and Competition Minister Ebrahim Patel indicated in the Government Gazette on August 1 that, in making the decision, government considered the current rapid rise in food prices in the Southern African Customs Union (SACU) market and globally, and the significant impact this has on the poor.
Patel said the imposition of anti-dumping duties may impact on the price of chicken as one of the more affordable protein sources. The Minister therefore decided to suspend the imposition of anti-dumping duties for 12 months.
Amie describes the decision as a major win for millions of cash-strapped consumers.
“This is an exceptional outcome for South African consumers, because they are under such significant financial pressure. Chicken is the most affordable [protein source] and therefore vital for consumers, especially those living below the poverty line.
“Government’s decision shows they are ready to take bold actions to help mitigate the impact of rampant inflation, which is encouraging,” says Amie CEO Paul Matthew.
Amie in April asked government to consider a moratorium on tariffs on imported chicken to help curb inflation. It also asked for existing tariffs to be reconsidered, and for all chicken cuts to be exempted from value-added tax.
Governments globally have been slashing import tariffs as a way to help their citizens survive, including Mexico, the Philippines and South Korea.
Amie explains that the liberalisation of trade policies can help consumers. The opposite is true of localisation and protectionist policies because they restrict competition, which lead to an increase the price of local goods.
“We do not know the detail of the suspended tariffs yet, or how they were determined, and will consider these in due course,” Matthew concludes.
In turn, broiler organisation the South African Poultry Association says the nonrenewal of trade tariffs threatens jobs and industry growth.
South Africa had reportedly been flooded with dumped chicken imports for many years up to 2018 when import tariffs started being introduced.
The International Trade Administration Commission found after conducting an investigation that Brazil, Spain, Poland, Ireland and Denmark had been dumping chicken in the SACU area at below the cost of production, causing “material injury” to local chicken producers.