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Thursday, 03 October 2013

Tariff increases on imported chicken in South Africa

South African Trade and Industry Minister Rob Davies announced on Monday tariff increases— of an overall average rise of 8.75 percentage point— on five categories of imported chicken products to protect local poultry producers. However the measure do not apply to the huge amount of European Poultry imports.
Mr Davies stressed that the level of the tariff increases had to strike "an appropriate balance" in limiting the price-raising effects on poor households while ensuring that domestic producers are placed on an improved competitive footing compared to their foreign counterparts.
The South African Poultry Association (SAPA) CEO Kevin Lovell claims that and the increases are too tiny and would apply to less than 6% of local consumption. Association of Meat Importers and Exporters of South Africa CEO David Wolpert opposed the hikes as they held they would result in higher prices and hurt the poor.
While not hitting the main target, the tariff revision is also likely to alienate South Africa’s South American trading partners, particularly Brazil and Argentina, which have already complained bitterly about expected hikes, Business Day Live reports.
South African poultry producers  were advocating for an increase of trade barriers to stem the massive amount of cheap poultry imports reaching their shores. APA estimates that about 80% of all chicken imports are from Europe.
European chicken enters South Africa duty-free under the bilateral trade, development and co-operation agreement between the EU and South Africa. SAPA is calling for the use safeguard measures provided for in the EU-SA agreement to deal with what the association claims is dumping.

Source: Business Day Live

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