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Friday, 08 November 2013

South Africa: Poultry producers seek protection from EU dumping

The South African poultry industry is requesting the government to impose an anti-dumping duty of 91% on Germany and the Netherlands, along with a similar duty of 58% on the UK, to prevent the dumping of frozen bone-in chicken portions in countries belonging to the Southern African Customs Union (Botswana, Lesotho, Namibia, South Africa and Swaziland).
The push by the South African Poultry Association for anti-dumping duties on the three European countries comes after the September increase in import tariffs on five categories of imported chicken products, targeting mainly Brazilian imports. Following this tariff increase, announced last month, importers from South Africa and exporters from South America had predicted a shift towards EU chicken products. South Africa does not impose duties on members of the European Union (EU) because of a trade and co-operation agreement signed in 2001.
The International Trade Administration Commission announced last month that it would be investigating anti-dumping claims against the three trading partners since the South African Poultry Association presented it with information that indicates a prima facie case of harm to the local industry.
Trade, competition and applied economics firm Econex said in its October research note that chicken imports from Germany had grown 487% from 2008 until last year. Imports from the Netherlands had risen 397% and those from the UK had risen 401% in the same period.
Econex described the imposition of higher tariffs as "protectionist policies", saying the costs to consumers were large and fell disproportionately on the poor. The company’s research showed that the poorest 10% of South Africans spend 15% of their household income on chicken.

Source: Business Day live