ONCE again, David Wolpert puts forward as truth two “facts” that are simply wrong (“Agoa benefits outweigh any sector interests”, Business Report, March 18) and cannot stand unchallenged.
The World Trade Organisation (WTO) has not “discredited the costing system used by the International Trade and Administration Commission of SA” in relation to US exports.
The South African use of the constructed cost model has never come before the WTO at all as the US has not brought it for review in the 15 years that the anti-dumping duties have been enforced. Why they have not done so is quite simply because they cannot defend the indefensible. The China case that is often trotted out as support for the stance of the US poultry industry did not deal with the method South Africa has used other than to say it is one of the acceptable methods.
Secondly, Wolpert states that ambassador Faizel Ismail referred to the “narrow vested interests” of the SA Poultry Association. In fact, the association was never mentioned. We would suggest in fact, that given the size of the local poultry industry, the number of commercial, small and emerging farmers involved in it, the 130 000 people employed by it, as well as myriad downstream industries – including grain farmers – that rely on this agricultural sector, that the only “narrow interests” are those of a handful of importers.
These select few have made billions of rands by opportunistically taking advantage of the artificially low prices of dumped chicken to flood the market over the years, forcing the closure of a number of smaller enterprises, placing this entire sector at risk, and putting thousands out of work – all for the sake of a few dollars more. The desires of the US poultry industry would add to the job losses we have already suffered and South Africa needs to create productive employment, not lose it.
Kevin Lovell
chief executive
The South African Poultry Association
Wild Fig Business Park