Earlier this month the US threatened to suspend trade benefits for South African farm products.

South Africa has signed an agreement with the United States to resume import of 65,000 tonnes of chicken each year, which had become bogged down over health concerns, the government said on Tuesday.

The veterinary trade protocol comes after the U.S. threatened to suspend trade benefits for South African farm products earlier this month, in retaliation against the clamp down on poultry imports.

South Africa has been concerned that an outbreak of avian flu in the United States which killed nearly 50 million birds could pose animal and human health risks to Africa’s most advanced economy. 

“We are on track to resolving the outstanding issues related to beef and pork. The chicken protocol shows we are moving in the right direction,” South Africa’s Department of Trade and Industry spokesman Sidwell Medupe told Reuters, adding that outstanding issues will be finalised by Dec. 31.

The pact the two countries signed is part of the African Growth and Opportunity Act (AGOA), a U.S. programme designed to help African exporters.

The agreement would see the United States emerge as one of the top poultry exporters to South Africa.

South Africa imposes “anti-dumping” duties of above 100 percent on certain chicken products, and industry groups said removing those import barriers opened a market which had been closed for the last 15 years.

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South Africa-United States sign Poultry Veterinary Trade Protocol

The “Protocol for Poultry Meat and Day-Old Chicks” has been signed by South African and US Veterinarians on Friday, the 13th of November, 2015.

After several months of technical discussions by the South African and US Veterinary experts a Poultry HPAI Trade Protocol has been finalised.

The United States and South African Veterinary authorities have been negotiating a Poultry HPAI Trade Protocol in the event of any new outbreaks of Avian Flu (HPAI) in the United States to secure the continued exports of poultry from those areas in the US that are NOT AFFECTED by Avian Flu. Almost 20 US States experienced outbreaks of Avian Flu this year.

Negotiating an appropriate trade protocol and health certificate that both secures market access for the US and also ensures safety for animal and human health was a challenging task for the Veterinarians from both the United States and South Africa.

This agreement signals another significant milestone in the process of securing AGOA for South African exporters into the US market.

South Africa’s Message on its AGOA eligibility remains:

1. AGOA has contributed significantly towards building a mutually beneficial partnership between the USA and South Africa.

2. South Africa is a vital part of the regional integration and development process underway in Africa and removing South Africa from AGOA would substantially diminish the significance of AGOA for sub-Saharan Africa and the United States.

3. The breakthrough made at the June 6-7th meeting in Paris on the poultry issue and the progress made on the SPS issues related to poultry, beef and pork offer significant opportunities for the US and South Africa to increase their trade in Agriculture.

4. South Africa is a relatively open economy and trade and investment relations between South Africa and the United States have continued to grow and deepen during the period under AGOA

5. Bilateral mechanisms, such as TIFA, have provided an excellent forum for the resolution of trade and investment concerns.

6. South Africa meets all the eligibility criteria to remain a beneficiary of AGOA for the next 10 years.

Background

Since August 2014 South Africa had campaigned successfully for AGOA to be renewed for all sub-Saharan African Countries.

South Africa’s campaign in Washington to also be included in the extended AGOA was successful.

President Obama signed the AGOA Extension & Enhancement Act (AEEA) of 2015 into law on June 29.

However, the US lobbies insisted that some issues of interest to them such as poultry, pork and beef needed to be resolved by South Africa to allow SA to be eligible South Africa remains on track to finalise outstanding issues by 31 December!

While the US out-of-cyle review held on the 7th of August in Washington had raised a number of concerns of US lobby groups, the USTR confirmed the main issues to be resolved in exchange for South Africa’s participation in AGOA were the three “meats”: poultry, beef and pork.

SA’s Veterinary experts have had several bilateral engagements since the Paris 4th and 5th June meeting including in Paris, Baltimore and via Video Conference on the 27th July, 14th of September, 9th of October, 15th of October, and 6th of November, to resolve the technical SPS issues of mutual concern, to facilitate the imports of these three meats from the US to SA.

The 65 000 ton quota will be open by 31st December 2015.

South Africa’s International Trade and Administration Commission has published the Anti-Dumping draft Rebate Regulations on Friday, the 30th of October, 2015 for comment.

The Regulations will be finalized by the end of November by ITAC and the quota for US bone-in-chicken pieces (chicken legs) will be created by SARS before the end of December 2015.

Issued jointly by the dti and Department of Agriculture, Forestry and Fisheries