South Africa has suspended anti-dumping duties on Brazilian exporters of frozen chicken meat. Brazil’s economy ministry confirmed the report and said the country has welcomed the decision as a way to boost its competitiveness in the South African market.

South Africa had been applying anti-dumping tariffs on Brazilian exporting companies since December 2021, ranging from 6% to 265.1%, in addition to an import tax, in response to overseas groups allegedly exporting meat below prices in its home market.

The suspension for up to 12 months was taken after several months of negotiations between the Brazilian government and South Africa, the ministry said in a statement. In 2021, Brazilian exports to South Africa exceeded $1bn, of which about 17% corresponded to exports of frozen chicken cuts, the ministry said.

Opposition

The government’s decision to suspend the tariffs ruffled a few feathers in the industry. The Food and Allied Workers Union (Fawu) slated the decision by Trade, Industry and Competition Minister Ebrahim Patel to suspend poultry anti-dumping duties for 12 months, saying this would kill jobs and sector.

The department of trade, industry and competition (DTIC) earlier this month granted a reprieve to Brazil, Denmark, Ireland, Poland and Spain by suspending the implementation of anti-dumping duties against them. It did so to grant relief to South African consumers who are battling with the high cost of living including soaring food prices.

The Food and Allied Workers Union (Fawu) slated the decision by Trade, Industry and Competition Minister Ebrahim Patel to suspend poultry anti-dumping duties for 12 months, saying this would kill jobs and sector.

The department of trade, industry and competition (DTIC) earlier this month granted a reprieve to Brazil, Denmark, Ireland, Poland and Spain by suspending the implementation of anti-dumping duties against them. It did so to grant relief to South African consumers who are battling with the high cost of living including soaring food prices. Local poultry producers have also threatened to hold back investment in the sector for the duration of the withholding of tariffs.

Source: FarmersReviewAfrica