Trade commission to raise tariffs on EU chicken imports - CNBC Africa

Trade commission to raise tariffs on EU chicken imports

Southern Africa

by Trust Matsilele 0

ITAC makes move toward EU’s chicken anti-dumping. PHOTO: Getty Images

ITAC is responsible for import and export control, international trade instruments and technical advice, tariff investigations and trade remedy solutions.

The proposed move by ITAC follows submissions made to the watchdog body by the South African Poultry Association that represents chicken producers in the country.

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In august last year, ITAC recommended to the ministry of trade and industry an increase in import tariffs on chicken.

However, due to South Africa’s 2001 trade and co-operation agreement, the recommendation could not be applied with regards to tariffs increment.

The agreement precluded South Africa from imposing import duties on EU members.

Siyabulela Tsengiwe, a commissioner at ITAC told CNBC Africa that the investigations being conducted followed credible submissions made by the local poultry association.

“The country on the receiving end has the right to take measures against anti-dumping and in our case the South Africa Poultry Association brought evidence with merit on dumping,” Tsengiwe noted.

“Dumping takes place in situations where companies will be exporting their products at a prices less than domestic selling markets in their home markets,” he added.

Tsengiwe posited that, tariffs in agriculture remain critical for the agriculture sector given that prices in the sector are distorted more so by developed countries that give huge support and subsidies that have an effect on pricing in receiving markets.

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The South African Poultry Association is calling for an anti-dumping duty of 91 per cent on imports from Germany and the Netherlands and a duty of 58 per cent on British chicken products.

According to some reports citing the revenue service, chicken imports from select EU countries amounted to over 100,000 tonnes in 2012.

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