Trade Forum reports on chicken import tariff
A trade brief released by the Namibia Trade Forum (NTF) last week, stated that the Southern African Customs Union is imposing a 200-day Provisional Payment of 13.9% duty on frozen bone-in chicken of EU origin.
The NTF is of the opinion that local importers of this particular chicken product are affected and the impact might be felt on the consumer. The trade forum said that it is investigating the extent of the tariff’s impact on local importers and retailers.
After the 200 days has lapsed, it will be up to the South African Minister of Trade and Industry to opt for an extension or not of the safeguard measure, which in this case applies only to the designated product.
Senior Trade & Investment Policy Analyst at the Namibia Trade Forum, Maria Immanuel, said that the temporary restriction is not a dumping claim as reported earlier but a precaution against it.
“This development was an accumulation of events that began in 2015, when the South African poultry industry applied to the South African International Trade Administration Commission for protection against imports from the EU” the trade brief stated.
The tariff comes into effect after the investigation process conducted by South Africa’s International Trade Administration Commission concluded that there was an increase in the volume of this specific imported chicken from the EU.
The application by the South Africa Poultry Producers to the commission was submitted in terms of the bilateral trade agreement between South Africa and the EU, the Trade Development Cooperation Agreement (TDCA) which facilitated the import of chicken from the EU duty free.
This agreement has since been replaced by the SADC – EPA agreement which came into force in October 2016. The provisional tariff on any of the particular chicken product (frozen bone-in) has been implemented since 15 December 2016 for 200 days and will end on 3 July 2017.
Namibia currently implements Quantitative Restriction on the poultry industry as a measure to support the local industry allowing for a maximum of 1500 tonnes of chicken imports per month.
The local poultry consumption is estimated to be approximately 3000 tonnes per month.
Local producer, Namib Poulty Industries, only supplies about 1200 tonnes per month indicating that the majority of locally consumed chicken is still imported.