South Africa says trade pact deadlock with US resolved

"South Africa's decision to finally fulfill the obligations of the settlement reached last summer means that after more than 15 years of illegal anti-dumping duties and unfair trade policies, American poultry will finally be able to enter the South African market", Coons and Isakson said in a statement.

Davies said trade relations between South Africa and the U.S. had been strengthened by the agreement.

"Although success will ultimately be realized when USA chicken is imported into South Africa, today's announcement is a positive step to bringing increased economic benefits to U.S. chicken farmers and companies across the country", they said.

South Africa believes that with some flexibility from both sides the final touches to the agreement on which 95 percent of the work has been done can be completed with some extra-time, Medupe said.

Agricultural exports to South Africa was worth $295 million in 2013.

While South Africa has never been a major destination for chicken exported from the US, it is a fast-growing market in Africa.

But there's little to confuse about the US's African Growth Opportunities Act (AGOA), a free trade agreement which the world's biggest economy introduced in the year 2000 to assist African exporters.

"With regard to pork, South Africa has agreed to permit the unrestricted importation of the shoulder cuts after the US agreed to apply mitigation measures", said Davies.

On beef, South Africa had already agreed to import beef from the U.S., however, the United States requested to be permitted to import livestock from third countries for direct slaughter and the meat thereof to be exported to South Africa.

The exclusion of specified agricultural products not only impact the agricultural sector but stands to affect overall trade in South Africa negatively, the South African Chamber of Commerce and Industry (SACCI) said.

US President Barack Obama had announced on November 5 that that access would be suspended within 60 days if South Africa had not allowed US chicken, beef and pork into South Africa.

US Ambassador Michael Froman said South Africa faces one more hurdle over US meat imports before it can make a toast to remaining a part of Agoa. The US requested South Africa to reconsider this.

"The actual arrival of poultry products into the market has been open since this morning", Davies said.

Agricultural imports from South Africa totaled $253 million in 2013.

SA has allowed virtually no United States chicken, pork or beef imports into the local market for several years, partly through anti-dumping duties and partly through health restrictions.

The agreement was reached following intense US government engagement with South African officials over the a year ago. South Africa has agreed to the assurances given by the US. Continued inclusion under the Act will enable the South African industry to build on the 27% growth in the value and 9% growth in the volume of South Africa's wine exports to the United States in the first nine months of 2014.

Source: South Africa says trade pact deadlock with US resolved