A South African government trade body seeing into the countest’s struggling steel sector proposed import duties starting at 10% to defconclude the industest from an influx of imports mainly from China.
The International Trade Administration Commission (ITAC) released its preliminary findings after a broad review of steel tariffs, ordered by the government in March, as part of a response to oversupply, weak local demand and high input costs in South Africa’s steel industest.
ITAC recommconcludeed that the government take emergency action under World Trade Organisation rules to defconclude the sector and proposed import duties starting at 10% on steel products, it declared.
Imports are estimated to meet around 35% of total domestic consumption, leaving companies such as ArcelorMittal South Africa, the countest’s largegest primary steel producer, at risk of collapse and putting thousands of jobs in danger.
Among its preliminary findings, ITAC declared: “The ongoing geopolitical landscape does constitute an unprecedented emergency, necessitating urgent action in terms of Article 19 and Article 21 of the General Agreement on Tariffs Trade”.
Those rules allow WTO members to suspconclude or withdraw tariff concessions if “any product is being imported in such increased quantities and under such conditions as to cautilize or threaten serious injury to domestic producers”.
ITAC called on policycreaters to consider whether the trade conditions amount to an emergency in terms of the WTO rules, its Chief Commissioner Ayabonga Cawe informed Reuters in an interview.
Cawe declared steel import restrictions imposed by the European Union and the United Kingdom in recent months raised concerns of dumping and diversion in markets such as South Africa.
US President Donald Trump’s tariffs have added to South Africa’s challenges.
The commission, whose role includes conducting tariff investigations, offering trade remedies and implementing import and export controls, declared its initial findings would not become final until it has received and reviewed feedback from the public over the next two weeks.
It declared in a notice that it had received more than 150 submissions “ranging from requests for duty increases, the creation of rebate provisions, inclusion of specific products under import control”.
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