The South African Poultry Association (SAPA) is preparing for a court battle with the Department of Trade, Industry and Competition over the continued preferential treatment of frozen bone-in chicken imports from the United States, arguing the concessions are no longer legally valid.
At the core of the dispute is a 2015 agreement linked to the African Growth and Opportunity Act (AGOA). SAPA CEO Izaak Breitenbach explained that South Africa secured tariff-free access for motor vehicles, citrus, and other products to the US market. In return, the local poultry industry agreed to a concession allowing 65,000 tons of bone-in chicken portions to enter the country free of anti-dumping duties.
However, Breitenbach noted that the agreement contained a specific clause: should South Africa lose its tariff-free benefits on motor vehicles and citrus, the poultry rebate would expire.
“President Trump in the most recent moves has implemented a 15% tariff for 150 days on South African products exported to the US,” Breitenbach said. “That actually means that this rebate should now expire, but it is still in place, and that is the issue.”
SAPA argues that the current arrangement effectively legalizes unfair trade or dumping, which the World Trade Organization does not permit. Breitenbach added that while dumped chicken enters the country at very low prices, those savings are not passed on to South African consumers, who instead pay market-related value. He noted that the local industry has expanded by 26% over the last five years and continues producing affordable chicken.
The CEO criticized the Department of Trade, Industry and Competition for agreeing with the US not to revoke the rebate without consulting the industry, describing the move as an attempt to prove to the Trump administration that South Africa was not acting with a “knee-jerk reaction.”
In a significant procedural development, Breitenbach revealed that the Minister of Trade and Industry has not filed its court papers on time. “The court case can go ahead unopposed in June this year,” he said, expressing confidence in a strong legal case. “We believe we’ve got a very strong case… that the rebate should not continue.”
