Safeguards in the South African poultry sector: an economic perspective

The recent decision by the Department of Trade and Industry (the dti) to implement a provisional safeguard duty of 13.9% on frozen bone-in chicken imports from the European Union (EU) has placed renewed focus on the South African poultry industry. Poultry producers state that increased imports are threatening to derail the industry in the form of job losses and plant shutdowns. Last year, the South African Poultry Association (SAPA) applied for a safeguard duty on imports of frozen bone-in chicken from the EU. The International Trade and Administration Commission of South Africa (ITAC) is continuing its investigation, but approved a provisional safeguard duty on 15 December 2016. During the initial investigation, Econex was instructed by Shoprite to conduct an economic analysis. We discuss our findings in this note.