US, South Africa Broker Deal to Strike Duties on US Chicken Exports

U.S. chicken exporters will have access to new markets following South African concessions to U.S. demands for removal of antidumping duties on bone-in U.S. poultry, said Sens. Johnny Isakson, R-Ga., and Chris Coons, D-Del., on June 5. The South African Poultry Association and the U.S. Poultry and Egg Export Council brokered the deal to give way to more U.S. access, said the two lawmakers in a release (here).

The Office of the U.S. Trade Representative and the State Department participated in the talks, the release said. South African antidumping duties on U.S. poultry have reached some 259 percent on average since the duties took effect roughly 15 years ago, U.S. industry has said (here). “While both sides recognize it may take some time for the South African government to complete its regulatory process, both sides are committed to expedite processes and resume shipments of U.S. chicken as quickly as possible,” said a joint U.S.-South African statement (here). Although that statement didn't say the South African duties will be eliminated, a USTR spokesman said they would be removed.

Isakson and Coons spearheaded U.S. efforts to eliminate the duties by leveraging South Africa’s beneficiary status in the African Growth and Opportunity Act. Coons recently threatened to amend the AGOA-led preference package, which the Senate passed in May (see 1505190019), to axe South African eligibility in AGOA after three years (see 1505070067). Senate Finance Committee members agreed to direct USTR to conduct an out-of-cycle review of South Africa 30 days after the preference package becomes law.

The House has yet to vote on its package, and Ways and Means Chairman Paul Ryan, R-Wis., said the legislation is likely headed for a brief conference (see 1506040066). House Republican leadership is aiming to vote on the package this month, although leadership hasn’t targeted any specific weeks for action on trade.