South Africa, US Settle Poultry Dispute
Suspension of SA from AGOA Stayed Over Avian Flu
South Africa and the US reached an agreement last
week on the technical issues which have been blocking US meat – essentially
poultry, pork and beef – imports into the African country.
Uncertainty about South Africa’s continuation
within the African Growth and Opportunity Act (AGOA) now appears to have been
lifted.
South Africa failed to meet certain AGOA
requirements since “it has not eliminated or made continual progress towards
eliminating barriers to US trade, including long-standing barriers to US
poultry, pork, and beef.”
According to US government data, poultry meat is the
third largest South African import from the US, with data showing that US$24
million worth of US poultry was imported into South Africa in 2013.
In the final agreement, South Africa will permit
the unrestricted importation of “shoulder cuts” under the condition that the US
apply mitigation measures including the removal of risk material before
exporting to South Africa.
With regards to beef, South Africa had suggested a
90-day quarantine period for foreign livestock slaughtered in the US. The US
has instead guaranteed that such products will comply with US domestic
requirements for human consumption. According to the statement, “South Africa
has agreed to the assurances given by the USA.”
Both countries have agreed on a protocol to control
the risk of transmission of Highly Pathogenic Avian Influenza (HPAI).
US President Barack Obama has set a 15 March 2016
deadline for implementing the deal to ensure that it does indeed function as
envisaged. Otherwise, as outlined in a presidential
proclamation published on 11 January, duty-free treatment for South
Africa’s AGOA-eligible agricultural products will be suspended.
South Africa’s AGOA eligibility
Last year, US President Obama set 31 December 2015
as a deadline for South Africa to comply with AGOA eligibility requirements.
With the country failing to conclude the negotiations on this issue by the set
deadline, South Africa faced the risk of its agricultural products being
suspended from AGOA.
AGOA expands upon the US Generalized System of
Preferences (GSP), a set of formal exceptions from the WTO’s most-favoured
nation (MFN) principle, which allows developed countries to offer developing
countries preferential treatment on specific goods.
This summer, the US Congress passed legislation to
extend duty-free access to the American market for eligible
sub-Saharan African countries for another decade through AGOA.
Avian Flu, Salmonella Testing Safety standards at
stake
Since 2000, imports of certain US chicken products
into South Africa had been subject to anti-dumping duties of above 100 percent.
In June last year, South Africa committed to end these import duties, but then
raised sanitary concerns in December 2014 over an avian influenza outbreak- an
infectious viral disease of birds which can sometimes spread to poultry - in 15
US states.
While agreements were reached on time for a quota
of bone-in-chicken pieces and a poultry trade protocol in the case of highly
pathogenic avian influenza, issues related to salmonella testing of US poultry
imports that arose after the deadline remained outstanding.
According to the South African Poultry Association,
the salmonella testing protocol implemented by the South African Department of
Agriculture, Forestry, and Fisheries is based on that of the European Union and
complied with the standards of the World Organisation for Animal Health. The
microbiological testing is intended to monitor for disease during multiple
steps of the production process.
Agricultural and automotive industry relieved
“We have succeeded in achieving a balance in
maintaining the trade opening with the US and the animal health in South
Africa,” declared Davies.
This announcement came as a relief for several
agricultural and automotive industries, which stand to benefit considerably
from preferential access to the US market through AGOA.
According to the South African government,
continued participation in AGOA will maintain numerous trade benefits for key
industries exporting towards the US market, including the automotive and
several agricultural sectors. In 2013, US$2.3 billion worth of
vehicles was exported from South Africa to the US and about US$253
million worth of South African agricultural products were exported to the US in 2013, with fruits and wines in
the leading categories.