Following the decision by the United States government to terminate South Africa’s eligibility for preferential trade benefits under the African Growth and Opportunity Act (AGOA), with effect from 1 January 2027, the South African Poultry Association (SAPA) believes that the rebate applicable to the annual chicken import quota of 65,000 tonnes, subsequently increased to 72,000 tonnes, should fall away in terms of the 2015 agreement.
SAPA understands, however, that the termination of AGOA benefits will not automatically result in the cancellation of the rebate, and that a separate formal decision will therefore be required.
With South Africa’s AGOA benefits set to fall away, SAPA intends to engage with the Minister’s legal team to establish the legal basis for the withdrawal of the rebate and secure their support for this position. SAPA therefore urges the Minister of Trade, Industry and Competition to engage with National Treasury and formally instruct the withdrawal of the rebate.
SAPA will use these latest developments to strengthen its existing court case and reinforce its legal arguments concerning the continued application of the rebate.
SAPA’s intention is to ensure that the poultry import rebate is reviewed in light of any material changes to the circumstances and agreements under which it was originally introduced.
Image by hansbenn from Pixabay
Relevant Agribook pages include “Poultry and Chicken Farming.” The Business Listings below comes from that page.
