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Monday, October 7, 2013

COSATU backs DTI tariff increase on imported chickens

Anthony Nwakaegho/NaijaAgroNet

The Congress of South African Trade Unions (COSATU) has commended the Department of Trade and Industry (DTI) decision to increase tariffs on selected chicken imports.

The Union revealed that the tariffs are important to guarantee jobs and food security as the poultry industry directly employs 48 000 employees with another 60 000 indirectly employed in supporting the sectors.

NaijaAgroNet discovered that South Africa is increasing the tariff to ensure that jobs are sustained since it does not depend on imports for basic necessities such as chickens and would not allow imported products to be sold at lower prices than local chickens.

 “A protected market for local producers should be accompanied by conditions, including creation of decent jobs and the five companies have claimed that 11 995 direct jobs and 14 892 indirect jobs are likely to be created when tariffs are imposed to their maximum rates of 82 percent.

“We should eat what we produce and should encourage production- and not consumption-led growth. By supporting producers the government is supporting creation of jobs on a sustainable basis. Most imported products are imported at lower prices in order to reduce the tax on imports and to destroy local industries. 

Once the imported products have obtained a significant market share they would start to raise prices,” COSATU said.

Prior to this determination, NaijaAgroNet learnt there was a dispute between importers and producers and  COSATU commended the Minister in choosing the side of the producers, as required by South Africa`s industrial policy framework.


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