Exporting chicken products from the US to South Africa can be extremely difficult. Since 2000, South Africa has issued a tariff for chickens from the United States. This tariff is an expense in addition to the ocean freight shipping rate. The reason for this tariff is because South Africa feels that the US is dumping prices of chicken below the fair market value.
Meanwhile, as South Africa has been placing these restrictions on chicken from the US, South Africa has benefited from the African Growth and Opportunity Act. Signed in 2000, this bill allows for certain duty-free products to the US from South Africa and other sub-Saharan African nations. The products, like wines and cars, experience great trade to the US each year. South Africa makes billions each year by having the US import their products duty-free.
Delaware, Georgia and other states in the South are home to a majority of America’s chicken producers. The representatives from these states, upset over the tariff against US chicken in South Africa, are threatening action. The New York Times says these representatives are threatening to ban South Africa from receiving the duty-free status for their products. After all, South Africa has a growing economy, and does not need the duty-free status like other nations. However, South African trade officials want their nation to continue to be in the trade agreement, despite the chicken tariff issue. These representatives from these chicken-producing states won’t budge on the duty-free status until the chicken tariff is removed.
Those companies that ship chickens should speak to a trusted freight forwarder who has knowledge on this important issue.