Broadcast Type: Interview; Tags: International, Trade, Administration, Commission, Itac, Approved, Rebates, Poultry, Chicken, Imports, Rebates, Tone, Industry, Members, Local, Councils
the international trade administration commission has itac approved rebates for poultry particularly chicken imports and the rebates tone seem over to to be going well with some industry members especially the local councils like the south african association poultry and that and we're gonna take a look at try and make sense of rationale the that was applied here and here what happened and to do that i'm joined the line by the on commissioner at the international trade administration commission ayabonga look at cawe to take a this good evening commissioner always thanks as for the time forty three thousand of chicken tonnes imports affected by these rebate sixty-five announcement permits approved an us issued you just give a sense of what's been happening there good evening jimmy and good listeners evening to your and thank you so much for inviting us yes indeed we've issued sixty permits the back of on this rebate provision might and it help to maybe just give and context some background towards the latter year part of last we had been issued with a ministerial directive to consider a poultry rebate in response to the shortages that would have arisen are or expected to arise as a result the of h five and eight seven adrian influencer which had picked in south around africa probably at september october with in some instances outbreaks twelve reported to the state vet per week and yes indeed it has tapered down it might be worth but giving some of that context because this rebate has effects play from come into around january of this year some of with the permits being issued to cover imports that would have been country around brought into the that time as well this is really so so to respond two what is for all intents and purposes as a veterinary issue rather than a typical trade issue we would ordinarily which intervene with now with regards to the rebate the understanding there is the that conditions for the rebate would be twofold one a shortage of chicken and secondly shortage being the caused by the avian influence how we already and established that the avian did take place influence but what local we're seeing from players in the space the the likes of south african poultry association fair play local market the is saying that there shortage is no so there is a bit of question around the a rationale behind providing riba and it's not alleviating the pressure on the local side but giving the foreign importers tailwinds something some there well it mean no seems to me i one really is happy read with this domestic producers or where even the importers it seems i've seen some of the reports attributing remarks to one of the importer organisations and they feel unhappy because they think know in this instance you we would be going to the domestic producers to verify whether have production we are not so so it see does that on either side there is some displeasure with the decision but let me say the following i think the impression is created here that being there's a full duty rebate on some of the more contentious tariff and that's not heading the case i mean this is an industry jimmy which since twenty scene nineteen in the case of bone in portions dies trump's tax lekota's and so on an increase in the duties from thirty-seven percent sixty-two percent to anti dumping duties instituted markets against certain when julius important coming through from then this rebate and which doesn't cover anti dumping duties but only the ordinary customs duties a partial its rebate on some of these a tariff quota two that is specified now me come to the point let that you raised around the shortage one of the rebate the conditions of is that we would issued permits in consultation the with the department of agriculture land reform and rural development and the agency one of there the national agricultural marketing council and the reason for that is precisely they because would then give us an indicative sense of the recovery both from a veterinary perspective but also in so far as production volumes are concerned and that would then determine the volume and the scope of the payments would subsequently that be issued and i think this instance in while the industry saying there are no shortages i think it to would be interesting we then hear what would come out of you know their deliberations with dell and also with ourselves red in so far as some of that inventory build up are suggesting is that they out there but is of the reports i think from that we have received dell rights many of which are public from january and february of seems this year it that the avian flu is very much with us and that their own objective assessment is that in so far as some the outbreaks of remain unresolved in particular epicentre around the around how dare discussion then i think the around trying to have this is a instrument to avert any shortages makes very real a very commissioner i wanted the to look at outbreak the avian influencer outbreak we saw last year that this forced a lot of producers local producers especially to go into additional culling that they hadn't anticipated into and they would go we didn't see any response a from concessionary point of view or from her a relief point of view being provided now i know that might not fall rented within your perhaps that might sit with the department of trade and industry and we might to have that conversation need there but have been could that a way to assist the local farmers i know as as the itec focused your on protecting the the local economy that that's a dual but role that you carriers a developmental economist as well to say local markets must be put first and that's that's what you've done with this should we have looked at saying then let's alleviate the pressure some of from that perspective something if that is we could have done would imagine well well i jimmy that indeed the the some of interventions trauma by security perspective to contain the outbreak would have visited a significant on many costs of the producers and i think you would certainly know even the reports from some of that they had been remarks many by of our counterparts in other state organs of about discussions and considerations around this unfortunately i don't know because as you correctly think i identify that this probably the remit wouldn't sit in of the trade relief instruments we would have that now toolbox also correctly but as you say we we should in be interested what that would mean the producers for many of and i those certainly would hope that discussions are continuing but in this instance we certainly have particular tools in our toolbox and one of those would be of the rebate measures sort but also will be some of the trade defence and even customs increase instruments that have assisted and protect the industry certainly since twenty nineteen where we've seen in the case of boundless even cuts so you know you know the chicken on breast and so up from twelve percent to around percent so forty-two these are the levels of protection that the industry has enjoyed we've also seen a reduction in imports over that period and i do think that in many instances of the remarks some or throwing the baby with the bath water out this is a intervention temporary and i think from some repo taj of the that we hearing industry from the domestic you would think that this is an armageddon moment a for the certainly don't industry and we think that's goes commissioner let you go before i thoughts i want to get your on the announcement from saudi arabia the beef around imports i know we are chatting about the poultry space but this does international trade affect and i haven't had the chance to get your thoughts on this as yet obviously from an export point of view is further testament it to the quality within south that exist africa that were able to export to markets whether were exporting before exporting were exporting citrus wines african the quality of the south agricultural spaces evidenced by developments these sorts of are definitely definitely i mean i think many of the listeners would know that agro processing the sector in south africa compares some of the best with i mean even the you know sectors that we have been speaking about but i think in the case that case in of the red meat exports saudi to arabia i think it's great that that particular market has now been opened up to export not just because it's able to generate going to be significant foreign exchange but begin to expose the palette of many consumer markets across the world to the quality of the goods we produce here and we for always bat south african agroprocessing largest i mean it's the manufacturing employer in south africa employing in the iron and people steel sector traditionally been which has the mainstay of of manufacturing south african so so it's great news jimmy we certainly hope and that that many stories is one of i mean if you take macadamia market the if you take soil south africa moving in saw a which is a major input into poultry production from importer being a net to a close to enact export position as a result of some that have of the investments been made and even now academia in being one of the leading if not the producer in the world so there's i think a lot to talk about when it comes to south african agro certainly processing and i hope we can have an opportunity to talk about of those things rather than i some of our squabbles over rebates and tariffs one thing you and i will definitely talk about and i'd love to get the minister in on this as well is we going when are to get clarity around the export for medicine or cannabis because that's an entire sector we are primed and ready for the council's and locally have been waiting with bated breath for that but look that one turbulence him on encourage you to invite the of convenor the cannabis master plan colleagues and even the boasting that departmental i think of justice as the department that well who are running with but i think that's another area south africa certainly where has unique compared of advantages competitive and ja well certainly convey the message thank you very much commissioner will leave at that lets the it commissioner at the international trade administration commission ayabonga cawe take joining me to a look at the poultry itec rebates that recently approved but also to look at some of the other trade and export opportunities that exist within the south african market jeremy hello maxi