Trade and Industry Minister Dr Rob Davies
Photo by: Duane Daws
The last minute deal expected to be reached in respect of the new African Growth and Opportunity Act (Agoa) must not undermine economic development and employment sustainability, directly or indirectly, in South Africa’s poultry sector, the Food and Allied Workers Union (Fawu) advised on Wednesday.
Engineering News Online reported in late May that South Africa and the US had agreed to facilitate deliberations between the South African Poultry Association (Sapa) and the US Poultry and Egg Export Council towards finalising discussions on market access for US chicken bone-in cuts into South Africa.
The meeting would take place on June 4 and 5 in Paris, France, on the margins of the Organisation for Economic Cooperation and Development Ministerial Council Meeting and would be attended by South African Trade and Industry Minister Dr Rob Davies and US trade representative Ambassador Michael Froman.
“Our government is now being asked to subject our poultry sector to increased dumped poultry tonnages from the US, more than double the allowable tonnage limit under the current Agoa agreement,” cautioned Fawu.
The union said it was clear that the much more ‘dumped’ poultry would negatively affect job retention and could cause major downward pressure on wages. “It will also push certain local firms to the edge and some may close shop,” Fawu foresaw.
But, there was a trade-off, because if the poultry sector accepted the deal, the US Congress would apply the Agoa import terms to the South African auto sector.
“Indeed, this will be great news, which we welcome for the auto sector and autoworkers, their families and communities dependent on US demand for South Africa-made cars. However, this is not such great news for the thousands of poultry workers, mostly women, who will face increased job losses in the light of the greater volume of dumped poultry products from the US,” the Fawu stressed.
Therefore, the union could not endorse this trade-off, explaining that the approach created artificial barriers between workers from different sectors and did little to help expanded manufacturing and overall economic development. “Decent wages and work should be for all workers in all sectors.”
The union called on government not to easily give in to the “blackmail by the US Congress” and continued to insist on a better deal for South Africa and the entire manufacturing sector in the last minute deal-making of the Agoa agreement.
“We hope the US Congress members will find it compelling to give this aspiration an expression in whatever stance they take,” Fawu concluded.