Barack Obama threatens South Africa over chicken row

US President Barack Obama has given South Africa 60 days to remove barriers to US farm produce or face sanctions in a long-running row over chicken exports.

South Africa banned US poultry imports last December after an outbreak of bird flu. The latest escalation would threaten South African exports to the US of oranges, nuts and wine.

South Africa exports $250m (£165m) of farm products to the US each year.

In a letter to Congress, Mr Obama said he was taking the step because South Africa “continued to impose barriers to US trade”.

In contrast, Africa’s second-largest economy has been able to export its meat to the United States duty-free.

The Unites States also says South Africa has used unwarranted sanitary restrictions to keep out US pork and beef.

South Africa says it is taking the warning seriously and is working to find a solution.

Trade Minister Rob Davies told reporters in Cape Town that they are “pretty close to resolving the sanitary matters that were outstanding”.

The BBC’s Lerato Mbele in Johannesburg says high-value goods such as cars remain unaffected by the latest dispute.

South Africa could still avoid the suspension, which could cost it up to $7m (£5m) in lost trade, if it meats benchmarks to eliminate barriers to US poultry, pork, and beef, said US Trade Representative Michael Froman.

“We do not take this decision lightly, and, in fact, have been working hard over many months – indeed years – to help South Africa avoid such action. Unfortunately, the issues persist,” Mr Froman said in a statement.

Eliminating barriers to US trade and investment is one of the criteria for membership of the African Growth and Opportunity Act (Agoa), which was renewed earlier this year and provides duty-free access to goods from sub-Saharan African countries, ranging from crude oil to clothing.