South Africa may scrap preferential quota for 74 thsd tons of US poultry imports

South Africa may review the terms of poultry meat imports from the United States and gradually phase out a preferential quota of approximately 74 thsd tons per year. The move follows the country’s loss of trade preferences under the US African Growth and Opportunity Act (AGOA), which provided African products with preferential access to the American market. South African poultry producers argue that, under the new circumstances, the country is no longer obliged to maintain preferential treatment for US exporters.

Agricultural economist Wandile Sihlobo has supported the domestic poultry industry’s position on the need to review existing trade arrangements. In his assessment, the quota could be abolished through negotiations with South Africa’s Department of Trade, Industry and Competition without resorting to legal proceedings. However, the possibility of retaining certain preferences will depend on prospects for new mutually beneficial agreements between the two countries, particularly regarding reciprocal tariff reductions.

South Africa remains a major poultry meat importer, purchasing around 350 thsd tons of products from overseas suppliers annually. Imports account for approximately 20% of domestic consumption, meaning a complete halt to foreign purchases is not currently under consideration. Brazil is the leading supplier of poultry meat to the South African market, accounting for around 70% of total imports.

In addition to Brazil, South Africa imports poultry meat from the United States, Argentina and European Union countries. Even if the preferential quota is abolished, US products could maintain a presence in the domestic market, although import conditions would change. A revision of the trade regime could intensify competition among foreign suppliers and affect the structure of South Africa’s poultry imports.

Meanwhile, South Africa’s poultry industry views the removal of special trade conditions for the United States as an opportunity to strengthen protection for domestic producers. Further decisions will depend on the South African government’s position and the development of trade relations with Washington. The country will nevertheless continue to rely on imported poultry meat to meet domestic demand, meaning the issue primarily concerns a review of tariff preferences rather than a ban on US shipments.

Tags: chicken, USA, South Africa