The squawking in South Africa's poultry industry over the suspension of anti-dumping tariffs has come to roost at the door of Trade, Industry and Competition Minister Ebrahim Patel. There are suggestions that he has done a deal with Brazil not only to suspend anti-dumping duties on imported Brazilian chicken portions, but possibly also with the assurance that the duties will never be imposed.
However, at a media session on Wednesday, FairPlay ruled out a legal challenge against the minister citing lengthy court processes that might rule on the matter way after the 12-month period of suspension had elapsed.
The matter surfaced after Brazil's Ministerio da Economica issued a statement last month praising the suspension of the tariffs for a year and suggested that the decision had been borne from engagements between the two countries’ officials.
In early August Patel suspended higher tariffs for Brazil, Poland, Spain, Ireland and Denmark after “having considered the rapid rise in food prices in the local market and globally, and its significant effects, especially on the poor”.
This was against a recommendation by the International Trade Administration Commission (Itac) that found that the five countries were dumping poultry cuts in the local market and that it injured the industry.
FairPlay, which is aligned to the South African Poultry Association (Sapa), already said that last month Brazil had credited its efforts for the decision and made no mention of food inflation, stating that the South African decision came after Brazilian government departments had engaged in months of dialogue with “the South African authorities”.
"It would seem that Brazil believes the suspension is permanent, not temporary, and that those anti-dumping duties will not be imposed.
"The Brazilian government will continue to pay attention to the case in the expectation that the temporary suspension of anti-dumping duties will become definitive,” FairPlay said in a statement.
At a media session on Wednesday, Ashoek Adhikari, a spokesperson for the FairPlay Movement said, "A case can be made against the minister, but FairPlay does not have the money for that process, which can take up to two years even. What we are doing is lobbying to make sure that the suspension of (anti-dumping tariffs imposed on chicken portions imported from) Brazil is (not) permanent. We will work with (trade unions) Cosatu, Fawu and all others affected by this to ensure the suspension is lifted in 12 months."
It called on Patel to say Brazil has been given no such assurance, arguing that he owes it to South African chicken farmers to confirm that the suspension of duties on dumped chicken imports from Brazil is temporary, and may well be shorter than 12 months.
Research body ChickenFacts, the nemesis of FairPlay, dismissed as innuendo the allegation that Patel had done a back-room deal with Brazil, arguing that it was the first finding on tariffs that considered and benefited the poor on their main source of protein.
“This is a troubling allegation. Reputable organisations should never have to descend to accusation and speculation to explain a decision that does not favour them.
“An allegation like this implies that the minister has obtained some kind of ‘favour’ in return for such a ‘secret deal’ which means that corruption cannot be far behind. And all this without producing the slightest shred of evidence," ChickenFacts countered. It taunted that "FairPlay has conveniently forgotten to mention that all imported chicken still carries a 62% standard import tariff and that imports of poultry have been steadily declining for the last three years".
Chickenfacts said it had contacted the Brazilian embassy, which said, “The Brazilian embassy has decided not to issue a formal response to FairPlay allegations. They are just trying to get attention from false information and we will not engage in discussions at such a low level.”
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