{"id":490,"date":"2018-08-30T14:54:00","date_gmt":"2018-08-30T14:54:00","guid":{"rendered":"http:\/\/thefreezoneblog.com\/blog\/2018\/08\/30\/south-african-farmers-play-chicken-wi\/"},"modified":"2018-08-30T14:54:00","modified_gmt":"2018-08-30T14:54:00","slug":"south-african-farmers-play-chicken-wi","status":"publish","type":"post","link":"https:\/\/thefreezonechannel.com\/old\/south-african-farmers-play-chicken-wi\/","title":{"rendered":"South African farmers play chicken with Trump tariffs"},"content":{"rendered":"
\n<\/a><\/div>\n
\n<\/div>\n
\n<\/div>\n
\n<\/div>\n
\nHerman Pretorius is just the kind of
\nwhite South African farmer U.S. President Donald Trump expressed concern
\n for when he barged into the country\u2019s delicate land reform debate by
\nordering an investigation into the \u201clarge-scale
\n killing of farmers\u201d.<\/u><\/u><\/div>\n
\n<\/u> <\/u><\/div>\n
\nBut for the greying, bespectacled
\n58-year-old, wading knee-deep through some 35,000 chickens at his
\nisolated homestead in South Africa\u2019s North West province, it\u2019s the
\nUnited States and its cheap poultry exports that are a threat.<\/u><\/u><\/div>\n
\n<\/u> <\/u><\/div>\n
\n\u201cWe cannot compare our chickens with
\ntheirs. The price difference will kill us,\u201d said Pretorius, speaking
\nwith a gravelly voice in his native Afrikaans.<\/u><\/u><\/div>\n
\n<\/u> <\/u><\/div>\n
\nFor years, the two countries have fought
\nover poultry: Washington has kept South African poultry out on health
\nand sanitation grounds while Pretoria accuses U.S. farmers of dumping
\nchicken at below-cost prices and has imposed
\n tariffs.<\/u><\/u><\/div>\n
\n<\/u> <\/u><\/div>\n
\nBut in 2015, South Africa\u2019s powerful
\npoultry industry agreed to exclude 65,000 tonnes of U.S. chicken from
\nthe anti-dumping tariff – in return for the renewal of broader duty-free
\n U.S. trade access that benefited other South African
\n industries.<\/u><\/u><\/div>\n
\n<\/u> <\/u><\/div>\n
\nNow, as a consequence of his \u201cAmerica
\nFirst\u201d trade strategy, Trump\u2019s decision to impose tariffs on steel and
\naluminium has reignited the poultry clash, threatening nearly $2 billion
\n of South African exports to the United States
\n under Washington\u2019s flagship African trade legislation (AGOA).<\/u><\/u><\/div>\n
\n<\/u> <\/u><\/div>\n
\nSouth African poultry farmers say because
\n U.S. aluminium tariffs apply to South Africa – even though aluminium
\nshould be exempt under the AGOA agreement – the 2015 chicken deal is
\nvoid and it\u2019s time to slap tariffs on U.S. poultry
\n again.<\/u><\/u><\/div>\n
\n<\/u> <\/u><\/div>\n
\nAfter months of threats, the South
\nAfrican Poultry Association (SAPA) pulled the trigger last week and
\nfiled a lawsuit against its government, calling for the U.S. poultry
\ntariff exclusion quota to be suspended.<\/u><\/u><\/div>\n
\n<\/u> <\/u><\/div>\n
\nIn its quest to rebalance trade
\nrelationships, Trump\u2019s administration is giving no quarter as it targets
\n friend and foe alike, from the European Union to China. Coming on the
\nheels of a row with Rwanda, the dispute with South
\n Africa highlights how even the smallest trading partners are not being
\nspared.<\/u><\/u><\/div>\n
\n<\/u> <\/u><\/div>\n
\n\u201cWe\u2019re not the cause of anybody\u2019s
\nproblems, and yet we\u2019ve been affected,\u201d South African Trade Minister Rob
\n Davies told Reuters in July. \u201cWe\u2019ve become collateral damage in a trade
\n war that is not of our making.\u201d<\/u><\/u><\/div>\n
\n<\/u> <\/u><\/div>\n
\n<\/u> <\/u><\/div>\n
\nWhen Pretorius set up his first chicken coops 27 years ago, he said competition from foreign imports wasn\u2019t an issue.<\/u><\/u><\/div>\n
\n<\/u> <\/u><\/div>\n
\nNow, he runs 14 industrial chicken houses
\n that turn out more than half a million birds every few weeks. But in
\nrecent years he said his business has stagnated – and he blames cheap
\npoultry imports for driving down prices.<\/u><\/u><\/div>\n
\n<\/u> <\/u><\/div>\n
\n\u201cThe damage got to a point where I wanted
\n to expand my business … wanted to create jobs for our people. But the
\n imports from overseas hurt me badly,\u201d Pretorius said. \u201cI want the South
\n African government to increase the import
\n tariffs.\u201d<\/u><\/u><\/div>\n
\n<\/u> <\/u><\/div>\n
\nIn the 20 years from 1995 to 2015, South
\nAfrica\u2019s annual poultry consumption nearly tripled to more than 2
\nmillion tonnes. But local production has expanded at a slower rate than
\nimports, which account for a quarter of consumption.<\/u><\/u><\/div>\n
\n<\/u> <\/u><\/div>\n
\nTo protect local farmers, the poultry
\nindustry lobbied for protectionist measures and in 2000 the government
\nimposed an anti-dumping tariff on U.S. \u201cbone-in\u201d poultry. The duty is
\ncurrently fixed at 9.40 rand ($0.64) per kg.<\/u><\/u><\/div>\n
\n<\/u> <\/u><\/div>\n
\n\u201cThat just levels the playing field for our own producers versus their dumped product,\u201d said SAPA\u2019s Marthinus Stander.<\/u><\/u><\/div>\n
\n<\/u> <\/u><\/div>\n
\nSouth Africa argues that the U.S.
\nindustry is tailored to Americans\u2019 preference for white, de-boned breast
\n meat. Since U.S. producers can recover their costs with the sale of
\nbreast meat, SAPA says the thighs and drumsticks favoured
\n by South Africans can be exported at below cost.<\/u><\/u><\/div>\n
\n<\/u> <\/u><\/div>\n
\nU.S. producers say the South African tariff is illegal.<\/u><\/u><\/div>\n
\n<\/u> <\/u><\/div>\n
\n\u201cThe anti-dumping duties imposed on U.S.
\npoultry were based on a flawed legal theory … that has twice been held
\n by WTO (World Trade Organization) panels to be inconsistent with
\ninternational rules,\u201d said James Sumner, president
\n of the USA Poultry & Egg Export Council (USAPEEC).<\/u><\/u><\/div>\n
\n<\/u> <\/u><\/div>\n
\nIn 2015, U.S. authorities approached the
\nSouth Africa and, using the threat of a withdrawal of South Africa\u2019s
\nAGOA benefits, pushed for a quota exempt from the tariff.<\/u><\/u><\/div>\n
\n<\/u> <\/u><\/div>\n
\nAGOA (African Growth and Opportunity Act)
\n grants qualifying countries duty-free access to U.S. markets for
\nthousands of goods and South Africa is among the main beneficiaries.<\/u><\/u><\/div>\n
\n<\/u> <\/u><\/div>\n
\nSouth Africa\u2019s poultry industry agreed to
\n the deal despite the fact its exports remain blocked from entering the
\nU.S. market. It calculates the quota has cost about 6,500 jobs.<\/u><\/u><\/div>\n
\n<\/u> <\/u><\/div>\n
\n\u201cIt was for the good of the other
\nindustries. So we kind of put on a Team South Africa hat in terms of
\nmaking the rest of the AGOA benefits possible,\u201d said Stander, who is CEO
\n of Country Bird Holdings Ltd – one of South Africa\u2019s
\n top poultry producers.<\/u><\/u><\/div>\n
\n<\/u> <\/u><\/div>\n
\nLast year, according to South African tax
\n authority data compiled by SAPA, the United States exported more than
\n87,000 tonnes of poultry to South Africa, up more than 200 percent from
\n2016 and second only to Brazil\u2019s 337,476 tonnes.<\/u><\/u><\/div>\n
\n<\/u> <\/u><\/div>\n
\nTrade Minister Davies said when the White
\n House announced tariffs of 25 percent on steel and 10 percent on
\naluminium this year claiming imports threatened its national security,
\nPretoria sought an exclusion.<\/u><\/u><\/div>\n
\n<\/u> <\/u><\/div>\n
\nSouth Africa\u2019s steel and aluminium
\nexports to the United States last year were worth more than $650
\nmillion, according to South Africa\u2019s Trade Law Centre.<\/u><\/u><\/div>\n
\n<\/u> <\/u><\/div>\n
\nBut since they constituted just 1 percent
\n of U.S. steel and a little over 1 percent of its aluminium, they
\nrepresented no threat to the United States, South Africa argued.<\/u><\/u><\/div>\n
\n<\/u> <\/u><\/div>\n
\n\u201cWe were just told that we were out. We
\nwere not going to be considered for exemption. The tariff was going to
\napply to us,\u201d Davies said.<\/u><\/u><\/div>\n
\n<\/u> <\/u><\/div>\n
\nNow that SAPA has filed a lawsuit to
\nforce a suspension of the poultry quota, the South African government
\nfinds itself in an awkward position. If the anti-dumping tariff is
\nreapplied, South Africa risks retaliation from Washington
\n which could have a more far-reaching impact on the economy as a whole.<\/u><\/u><\/div>\n
\n<\/u> <\/u><\/div>\n
\nThe USAPEEC\u2019s Sumner told Reuters his
\ngroup would lobby the U.S. government to take action if the quota is
\nrevoked over the metal tariffs.<\/u><\/u><\/div>\n
\n<\/u> <\/u><\/div>\n
\n\u201cIt has absolutely nothing to do with
\npoultry trade between the U.S. and South Africa,\u201d Sumner said. \u201cSAPA is
\ntrying to be opportunistic here and to increase trade frictions
\nunnecessarily.\u201d<\/u><\/u><\/div>\n
\n<\/u> <\/u><\/div>\n
\nSouth African meat importers also oppose
\nany suspension of the quota. They say it would push up prices for
\nconsumers and could provoke Washington\u2019s wrath.<\/u><\/u><\/div>\n
\n<\/u> <\/u><\/div>\n
\n\u201cIt\u2019s quite possible the Trump
\nadministration would take South Africa on,\u201d said David Wolpert, CEO of
\nthe Association of Meat Importers and Exporters of South Africa.<\/u><\/u><\/div>\n
\n<\/u> <\/u><\/div>\n
\nThe form of any possible U.S. retaliation is unclear for now.<\/u><\/u><\/div>\n
\n<\/u> <\/u><\/div>\n
\n\u201cWe cannot speculate on what South Africa
\n may or may not do with respect to its tariffs and non-tariff barriers,\u201d
\n a U.S. State Department official wrote in response to Reuters\u2019 queries.<\/u><\/u><\/div>\n
\n<\/u> <\/u><\/div>\n
\nBut analysts and South African officials worry the country\u2019s AGOA benefits may be in danger, again.<\/u><\/u><\/div>\n
\n<\/u> <\/u><\/div>\n
\nWashington used the threat of a
\nwithdrawal of AGOA benefits to press Kenya, Uganda, and Tanzania to roll
\n back tariffs last year on second-hand clothing from the United States.
\nRwanda refused and its AGOA benefits were curtailed
\n in July.<\/u><\/u><\/div>\n
\n<\/u> <\/u><\/div>\n
\nA blanket suspension of South Africa\u2019s
\nAGOA status would hit the transportation equipment industry hardest.
\nAbout 85 percent of its nearly $1.4 billion in exports to the United
\nStates were covered by AGOA last year.<\/u><\/u><\/div>\n
\n<\/u> <\/u><\/div>\n
\nUltimately, with legal action pending,
\nthe South African government\u2019s hands may be tied. And despite the
\nbroader economic implications, South Africa\u2019s poultry industry is
\nstanding firm.<\/u><\/u><\/div>\n
\n<\/u> <\/u><\/div>\n

<\/p>\n

\n\u201cWe agreed something to benefit the South
\n African industries. And that benefit has been taken away … We just
\nwant what\u2019s fair,\u201d SAPA\u2019s Stander said. <\/div>\n","protected":false},"excerpt":{"rendered":"

Herman Pretorius is just the kind of white South African farmer U.S. President Donald Trump expressed concern for when he barged into the country\u2019s delicate land reform debate by ordering an investigation into the \u201clarge-scale killing of farmers\u201d.   But for the greying, bespectacled 58-year-old, wading knee-deep through some 35,000 chickens at his isolated homestead […]<\/p>\n","protected":false},"author":1,"featured_media":1709,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[1],"tags":[44],"class_list":["post-490","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-uncategorized","tag-trade","has-post-title","has-post-date","has-post-category","has-post-tag","has-post-comment","has-post-author",""],"yoast_head":"\nSouth African farmers play chicken with Trump tariffs - The Freezone Channel<\/title>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" href=\"https:\/\/thefreezonechannel.com\/old\/south-african-farmers-play-chicken-wi\/\" \/>\n<meta property=\"og:locale\" content=\"en_US\" \/>\n<meta property=\"og:type\" content=\"article\" \/>\n<meta property=\"og:title\" content=\"South African farmers play chicken with Trump tariffs - 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