LETTER: Arguments against chicken import tariffs are incorrect

Paul Matthew exaggerates (“Tariffs on chicken imports ahead of the Brics summit not a smart move for SA”, July 25).

On behalf of chicken importers, he also pretends that antidumping duties are general import tariffs. Not true. Dumping — importing at unfairly low prices to capture market share — is a contravention of international trade rules and antidumping duties are a specific counter to such dumping, which harms local producers and costs local jobs.

That damage was investigated, proven and accepted by trade, industry & competition minister Ebrahim Patel a year ago. It is now time for him to impose the duties and provide protection against unfair trade for which local chicken farmers have been waiting for 12 long months.

Matthew implies that the antidumping duties will apply to all chicken imports. They will apply only to specific products (bone-in portions such as leg quarters) from Brazil and Ireland, and to three countries whose imports are now blocked by bird flu bans — Denmark, Poland and Spain.

He pretends there will be a huge increase in chicken prices if the duties are imposed. Not true, as shown by a study by the respected economic consultancy Genesis Analytics. The maximum effect is an average of 2.5%, only on bone-in portions, and this will be reduced by a number of factors, including local competition and the possibility that Matthew’s clients in Brazil will drop their prices, as they have done in the past.

He pretends the EU will be so angry at the imposition of duties that they will retaliate. Really? Antidumping duties have been in force since 2015 against Germany and the Netherlands, and Britain when it was an EU member, and there has not been a hint of trade retaliation.

He pretends the US will be so angry that it too will retaliate. This has nothing to do with the US, which already has a substantial annual quota free of antidumping duties.

Shorn of credible arguments, Matthew urges Patel to take a political decision in favour of Brazil and Brazilian workers, and not one in the interests of the local industry, local jobs or local consumers. He should be ashamed.

Francois Baird
Founder, FairPlay movement

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