ATLANTA — A breakthrough in negotiations with South Africa is expected to lead to $65 million in renewed exports of chicken leg quarters because of congressional pressure.
James Sumner, president of the USA Poultry & Egg Export Council based in Stone Mountain, gave much of the credit Wednesday to Sen. Johnny Isakson, R-Ga., noting that Georgia will benefit considerably from the development as the country’s No. 1 poultry-producing state.
“His involvement was really critical in all of this coming about,” Sumner said.
South Africa accused American producers 14 years ago of violating international agreements by selling chicken parts below cost, a practice known as dumping. It was the first country to make those charges, but Mexico, Ukraine and China soon followed suit, levying an extra anti-dumping duty on American sales.
“In fact dumping is a new form of colonial oppression of the poor as it takes away jobs from local industries,” the South African Poultry Association published recently in its newsletter.
The United States challenged China’s claims before the World Trade Organization and won, which led to backtracking by Ukraine and Mexico, leaving South Africa as the last unresolved dispute. Sumner blames the administration for never fighting the South African allegations at the WTO.
What did change South Africa’s stance was a provision introduced by Isakson and Sen. Chris Coons, D-Del., that would have eliminated South Africa from the renewal of trade preferences in the African Growth and Opportunity Act.
The South African Department of Trade and Industry acknowledged Monday that retaining the preferences were critical to its decision to come to terms on American chickens.
“The South African government commits to facilitate the implementation of the framework agreed by the two industries after following due process,” said the department.
The first year, sales are limited to 65,000 tons but will increase later. The initial exports could begin by yearend if remaining details are ironed out, Sumner said.
“This is going to have a huge impact for us,” he said. “It comes at
a critical time.”
That’s because international concerns about outbreaks of avian influenza have led to quarantines in many states outside of Georgia and a 15 percent reduction in U.S. egg production. Possible import bans by other countries could severely cripple poultry producers.
For Isakson, the breakthrough is also welcome news.
“It’s the biggest thing I’ve been a part of in my political career in terms of economic benefit,” he said. “…I’m just as excited as I can be.”
He said he’s been working on this issue for three years, including a trip with Coons to South Africa. His seats on the Senate Finance and the Senate Foreign Relations committees provided the chance to add the chicken provision to the preference agreement when it came up for renewal.
“Within a week of passing the bill, they agreed to meet,” Isakson said of the South Africans.