Itac SA: Chicken Import Tariff Sunset Review on EU Duties Sparks Debate

• Itac is reviewing anti-dumping duties on frozen bone-in chicken imports from Germany, the Netherlands, and the UK.
• The SA Poultry Association requested the extension of these tariffs, which were set to expire in August.
• The Association of Meat Importers and Exporters argues against the extension, citing increased consumer costs and changed European market conditions.
• Trade attorney Kherina Narotam states the legal burden is on the poultry industry to prove continued dumping and material injury for the duties to be extended.
• If extended, these tariffs, first imposed in 2015/16, would have been in place for 15 years.

The onus of proof, therefore, rests squarely on the applicant—in this instance, the poultry industry represented by Sapa—to conclusively demonstrate, with positive evidence, that allowing the duties to expire would likely result in the continuation or recurrence of both dumping practices and material injury to the domestic industry.

The International Trade Administration Commission (Itac) is currently undertaking a critical sunset review concerning anti-dumping duties applied to frozen bone-in chicken imports originating from Germany, the Netherlands, and the United Kingdom. These tariffs, initially implemented in 2015/16 and subsequently extended in 2021 for a five-year period, were slated to lapse in August. The review was initiated following a formal request from the SA Poultry Association (Sapa), representing the poultry industry within the Southern African Customs Union, advocating for the continued application of these protective measures.

In direct opposition to an extension, the Association of Meat Importers and Exporters (Amie) has submitted its arguments to the government, contending that there is insufficient evidence to justify the ongoing imposition of these duties. Amie highlights that if Sapa's bid is successful, these tariffs will have been in effect for a total of 15 years. The importers' association further asserts, drawing on data from the South African Reserve Bank, that the cumulative effect of various tariffs, including anti-dumping duties on chicken from multiple regions, contributed to a more than 16.2% increase in the cost of frozen chicken between 2012 and 2021. This increase, Amie argues, disproportionately affects low-income consumers who rely on affordable protein sources.

The legal framework governing Itac's current review is crucial, as emphasized by trade attorney Kherina Narotam of Commodity Trade Observer, who was instrumental in preparing Amie's submission. Narotam underscores that the law inherently presumes the expiration of such duties. A sunset review, she explains, does not constitute an automatic renewal but rather a fresh and rigorous assessment based on current evidence. The onus of proof, therefore, rests squarely on the applicant—in this instance, the poultry industry represented by Sapa—to conclusively demonstrate, with positive evidence, that allowing the duties to expire would likely result in the continuation or recurrence of both dumping practices and material injury to the domestic industry.

Sapa's submission, advocating for the review and extension of tariffs, presented figures suggesting that frozen bone-in chicken is sold at significantly lower prices in South Africa compared to its countries of origin. Specifically, Sapa estimated that chicken from the Netherlands is sold at prices 32.48% higher in its domestic market, while average UK prices were reported to be 61.84% higher than those in South Africa. Utilizing export prices to Ghana as a comparative benchmark, Sapa also indicated that Germany sold chicken at approximately 425.64% higher prices in its domestic market, although it noted no imports from Germany to South Africa were recorded in 2025. Amie, however, disputes these figures, asserting they are inaccurate, do not facilitate fair like-for-like comparisons, and, particularly concerning Germany and the UK, rely on data that is not representative of the specific products under review.

Amie further contends that the market conditions in Europe have undergone substantial changes since the initial imposition of protective tariffs in 2015, which should be factored into Itac's decision. Germany, for example, continues to grapple with avian influenza restrictions, leading to a decline in its poultry production. The United Kingdom is identified as a net importer, with its domestic production fulfilling only about 80% of its internal demand. Concurrently, Dutch poultry is increasingly directed towards meeting demand within the European market. Amie argues that these evolving dynamics significantly reduce the probability that substantial volumes of chicken would be diverted to South Africa should the existing duties be allowed to expire.

Paul Matthew, CEO of Amie, articulated that the discussion should not be framed as a binary choice between fostering domestic production and permitting imports. He emphasized the necessity for South Africa to cultivate a robust, competitive, and expanding domestic poultry industry while simultaneously acknowledging the vital role of responsible imports. These imports, Matthew stated, are crucial for supplementing local production, bolstering food security, and offering consumers a broader range of choices. He concluded by stressing that tariffs inevitably carry consequences for consumers, thereby necessitating clear and compelling evidence to justify any extension.

Lawyers advising clients in the South African poultry import/export sector must closely monitor the International Trade Administration Commission's (Itac) sunset review decision on anti-dumping duties for frozen bone-in chicken, as the legal burden is on the applicant to demonstrate continued dumping and material injury for tariffs to be extended, impacting import costs and supply chain strategies.

Source: Original reporting via industry analysis and submissions.