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The US will focus on its role in the development of new black entrepreneurs in the poultry import market after the arrival of the first shipment of US chicken on South African shores last week.
A day after the arrival of the shipment, signalling the end of the US’s threat to suspend South Africa from benefits under the African Growth and Opportunity Act (Agoa), US ambassador to South Africa Patrick Gaspard said he met with 31 black entrepreneurs who have an interest in the trade sector.
South Africa was at risk of missing the March 15 deadline to agree to US poultry import terms following US President Barack Obama’s threat to suspend South Africa’s benefits from the policy, which provides duty-free market access to the US for qualifying South African products.
“Now that the issues involving Agoa have been resolved, we are focused on developing a broader, stronger economic partnership with South Africa, and we believe that expanding trade and investment in both directions is the best way to do so,” said Gaspard.
US authorities met with representatives from the department of trade and industry, the department of agriculture, forestry and fisheries, and the International Trade Administration Commission of SA last week to work on developing “new black-owned businesses in trade”.
Gaspard said the Agoa agreement would play a huge role in the transformation of the South African economy.
The agreement was also good news for the Association of Meat Importers and Exporters of SA, which said South African consumers would benefit the most because the increased competition would keep poultry price increases in check.
David Wolpert, the CEO of the Association of Meat Importers and Exporters of SA, said: “The agreement that is being finalised means the increase in poultry prices will not be as high as was expected because there is now more competition.
“We were never worried about the standard of US poultry because we know it’s high. The criticism of US poultry safety standards was unwarranted. We are thrilled we no longer have to worry about losing the benefits that come with duty-free exports.”
Under the new deal, South Africa has agreed to import 65 000 tons of US chickens annually, and Trade and Industry Minister Rob Davies last week moved to reassure South Africans that there was nothing to be concerned about regarding safety issues of US poultry.
“All the meat that is going to be imported – poultry, beef and pork – will meet both our own standards and international standards. In addition, the vets will continue to undertake the normal process of sampling each consignment as it comes through and, based on those tests, the products will come through into the market,” said Davies.
South African exporters stood to lose billions in duty-free exports as nearly R25 billion of total South African exports of R70 billion to the US were affected by Agoa free duties.
