South Africa stops anti dumping duty on poultry imports
South Africa has stopped anti-dumping duty on poultry imports from Brazil and four European Union (EU) countries (Denmark, Ireland, Poland and Spain) to protect consumers’ pockets amid soaring food prices. The minimum timeline is for one year.
The SA Meat Exporters and Importers Association (AMIE) welcomed the move, saying it means that many consumers living below the poverty line can afford to buy an important source of protein. The suspension follows a 2021 investigation by the International Trade Control Commission (ITAC) into five countries into anti-dumping tariffs, which found that chicken was being sold at very low prices in South Africa, threatening the local poultry industry. It was found to have caused “significant damage”.
Before the ITAC investigation was completed, the government had imposed an interim anti-dumping tariff from December to June 2021 to combat what the SA poultry association described as predatory and unfair trade.
Trade and Industry Secretary Ebrahim Patel said his decision takes into account the current rapid rise in domestic market and global food prices and the significant impact this is having on the poor. This becomes clear from a notice published in the Official Gazette on Monday (August 1).
Food prices were hit by inflationary pressures and higher oil prices caused by Russia’s invasion of Ukraine. Stopping tariffs on chicken imported from five countries is a step in the right direction, Matthew says. AMIE said the government submitted a request in April to consider a moratorium on tariffs on imported chicken to curb inflation. She also called for a review of existing tariffs and exempting all parts of chicken from VAT. “Governments around the world have cut import tariffs to help keep their citizens alive have lifted tariffs on imports,” says Matthew.
“Liberalization of trade policies can help consumers.”
The Association warned of massive unemployment, record food prices and threats to food security if the temporary tariffs were not implemented.
Follow us on LinkedIn, Twitter & Facebook.
Related article: South African poultry calls to re-new anti dumping duties
Source: Money Web
