Source: Rita Jane Gabbett, MEATINGPLACE, 4/20/15

U.S. Sens. Johnny Isakson (R-Ga.) and Chris Coons (D-Del.), both members of the Senate Foreign Relations Committee, last Thursday introduced legislation to reauthorize the African Growth and Opportunity Act (AGOA) that aims to prevent countries from receiving benefits under the program while imposing unfair limits on American imports.

The bill would give the administration new flexibility to suspend or selectively limit the benefits of participating countries — rather than solely being empowered to completely withdraw all benefits — giving the United States new leverage to persuade South Africa to drop its ban on U.S. poultry.

The bill would also allow the administration to initiate an out-of-cycle review of beneficiary countries to determine continual progress in meeting the eligibility criteria. Additionally, there is a Sense of Congress provision that states that the president should initiate a review of South Africa or any other non-compliant beneficiary within 30 days of enactment.

In 2000 — shortly after the enactment of AGOA — South Africa began imposing antidumping duties on U.S. poultry product. The duties are based on a pricing system that values all parts of the chicken the same.

Under current law, the U.S. government’s only option for punishing an AGOA beneficiary not living up to the standards set in the law is to complete terminate benefits. This reauthorization bill would allow the administration to limit or suspend a non-compliant country’s benefits in a more incremental and targeted manner.

“We expect the U.S. Trade Representative to utilize this new flexibility to level the playing field for American-grown and American-made products — including chicken — in South Africa,” the senators said in a statement. “Working with a number of our colleagues, we are also developing additional amendment language reflective of our deep concern over South Africa’s continued disrespect for its trade relationship with the United States.

Negotiations continue
“This [legislation] does effectively send a signal to South Africa that the way they are handling these issues is being carefully monitored,” USA Poultry and Egg Export Council President Jim Sumner told Meatingplace.

Current negotiations between USAPEEC and the South African Poultry Association are currently centered on determining how much poultry the United States was exporting to South Africa in 2000 then agreeing an appropriate formula for calculating what current levels might be had those antidumping duties not been imposed.

Meetings between the two groups last week produced little progress on those specifics, according to Sumner.

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