Davies upbeat over US talks in Paris

TRADE and Industry Minister Rob Davies believes that talks with the US, set to take place in in Paris in June, will end the spat over chicken imports and open the way for South Africa to be a part of the renewed Africa Growth and Opportunity Act (Agoa).

Davies acknowledged yesterday, during a media briefing on his budget vote, that the US had toughened its stance against South Africa over its chicken’s access to the local market. He said it was evident that the US was moving in “a non-reciprocal direction”.

South Africa and the US have deadlocked on import duties for US chickens, with South Africa complaining about the impact unrestricted access will have on its market.

Davies said he might join his officials and the poultry sector in their discussions in Paris on June 4. Agoa is up for renewal in September and the bill on Agoa is currently before the US Senate.

If South Africa and the US do not reach an agreement on chicken imports, this could lead to the exclusion of Pretoria, leading to billions in losses.

However, Davies was still hopeful yesterday that there could be some positive movement despite the discussions having stalled. He said they had been engaging on this matter for some time with the US.

“Those engagements have not resulted in the meeting of minds. We agreed with the US Trade Representatives that we will meet in Paris on June 4,” he said. “The issues on Agoa are ongoing and they pose a “What Agoa has done in the last 15 years is a growing, balanced trade with the US. What we are confronted with, I am sure it has never happened before, is a stronger reciprocity. What we are confronted with is a list of things that will exclude us from Agoa,” he said.

“If South Africa can’t produce chicken I don’t know what we can produce. We are confronted with that challenge,” he added.

Davies said despite this challenge he hoped that he would be able to help South Africa with the US reach an accommodation.

The discussions in Paris, next month, could yield positive results. Last month Davies was in the US to try and get the Americans on board over the poultry issue.

PHOTO: ARMAND HOUGH Trade and Industry Minister Rob Davies challenge for us in South Africa. It’s not the same game as it was before.” Davies said he had been concerned about the terms of the US on South Africa’s reentry into Agoa. He said he had always argued that “why...