Daily Dispatch

EU denies chicken dumping claims

- By LINDA ENSOR

THE EU has rejected as false claims by local poultry producers that it is dumping bone-in chicken portions onto the local market and causing widespread job losses in the industry.

Major poultry producers have shed jobs and closed plants because of what they say is the flood of imports from the EU.

Total poultry imports currently represent about 26% of consumptio­n, according to the South African Poultry Associatio­n.

The EU delegation to SA has criticised the associatio­n for conducting what it calls a “massive” media campaign against EU poultry imports “alleging, on a daily basis, that the root cause of the job losses is the ongoing dumping, by the EU, of chicken bonein parts. This allegation is false”.

“As we speak, there is no dumping of EU chicken in SA.

“If there had been, the associatio­n would have filed a complaint to the Internatio­nal Trade Administra­tion Commission (Itac) for dumping, as they did in the past.

“They have not. The South African authoritie­s themselves acknowledg­e that dumping is not the issue,” the delegation said.

To support its case, the EU noted that aggregate imports of EU chicken bone-in imports to SA last year did not exceed 200 000 tons, representi­ng less than 10% of overall poultry consumptio­n: “We fail to see how such a relatively moderate market share should be the main cause of the problems facing the South African industry.”

It added that the outbreak of avian flu in a number of EU producer countries had resulted in a fall of more than 66% in EU exports of bone-in chicken portions this year.

What was needed, the EU said, was for the heavily concentrat­ed local industry to be restructur­ed to allow more space for small- and mediumsize­d enterprise­s to operate.

Merely imposing higher duties on EU imports would only result in importers switching to other chickenexp­orting countries.

On Tuesday, chief executive of the poultry associatio­n, Kevin Lovell, explained that it had opted for an applicatio­n to Itac for safeguard duties, rather than anti-dumping duties, as the former applied to all EU countries – including those not currently exporting chicken to SA – whereas an anti-dumping duty could only be applied for against the imports of individual countries.

The option of applying for antidumpin­g duties could be used if the safeguard duty proposed by Itac is not satisfacto­ry.

Anti-dumping duties have already been granted by Itac against Germany, the Netherland­s and the UK, but the poultry associatio­n believes they are too low to deal with the problem.

Trade and Industry Minister Rob Davies imposed a 13.9% safeguard duty on EU bone-in chicken portions in December and instructed Itac to investigat­e the issue and make a further recommenda­tion, which is expected to be submitted next month.

Poultry associatio­n chairman Achmat Brinkhuis also commented on the EU statement, saying the only reason all EU poultry-exporting countries to SA had not been found guilty of dumping was because of World Trade Organisati­on (WTO) rules, which set a minimum threshold on the volumes exported before anti-dumping duties can be considered.

“We will, in due course, launch actions against all those EU countries who fall within the WTO thresholds, all of whom are dumpers of dark meat,” Brinkhuis said.

He stated that it was “false and misleading” for the EU to claim no dumping was taking place as this was only based on the fact that the outbreak of bird flu in the main chickenpro­ducing countries in the EU meant they could not export at the moment.

“The bird flu ban is temporary, and dumping will resume when the ban is lifted,” Brinkhuis said. — BDLive

 ??  ?? NOT TRUE: The EU says the heavily concentrat­ed local industry must be restructur­ed to allow more space for small- and medium-sized enterprise­s
NOT TRUE: The EU says the heavily concentrat­ed local industry must be restructur­ed to allow more space for small- and medium-sized enterprise­s

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