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Chick-News.com Poultry Industry News, Comments and more by Simon M. Shane

Dumping or Competition - It Depends on Definition and Perception

08/03/2020

According to international trade regulations, “dumping” is defined as a nation exporting a product at a price below the prevailing domestic value or at a price lower than shipped to other nations.  In contrast, “competition” reflects a price charged by a nation applying scale of production, efficiency or an inherently lower cost structure than the importing nation.

 

The contrast between dumping and competition is especially relevant to the situation in the Republic of  South Africa (RSA).  In 2016, FairPlay was established By Francois Baird to "end predatory practices regarded as being immoral". Baird is the founder and co-Chairman of Baird's CMC, a public relations operation representing multinational organizations with an emphasis on southern Africa. 


Francois Baird

 

He was previously the managing director of Edelman in South Africa before locating to the U.S.  He has managed election campaigns for African politicians and represented companies such as ESKOM, the dysfunctional electric utility in the RSA that is rife with corruption and mismanagement and he has extensive government connections.

 

The FairPlay movement is intent on preserving jobs within the South African chicken industry that appear threatened by imports from Brazil the U.S. and the EU.

 

Although Baird claims that the U.S. is dumping chicken into South Africa, evaluation of cost of production and selling prices prove otherwise.  The FairPlay movement initiated by Baird has also campaigned against importation of textiles, cement and steel and is obviously funded by industry associations with or without official declaration or government approval.

 

From 2016 onward, the U.S. exported predominantly leg quarters according to a negotiated quota and tariffs.  Despite the agreement that was leveraged applying the advantages South Africa receives under the Africa Growth and Opportunity Act, opposition in the form of continual legal and political action by the South African Poultry Association has detracted from adherence to the Agreement.


 
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