In March, the International Trade Administration Commission (ITAC), under the instruction of the Minister of Trade, launched a comprehensive review regarding tariffs. The South African steel sector is facing serious challenges, including low-cost imports from China, which is dealing with overcapacity, as well as energy and logistics bottlenecks and declining demand.
ITAC Chief Commissioner Ayabonga Cawe stated at an automotive parts conference held on Thursday that the bulletin to be published next week will contain the preliminary findings of the review.
The process is running in parallel with the government’s discussions with ArcelorMittal South Africa. The company had announced plans to shut down long product manufacturing operations, which are critical for the local construction, mining, and automotive sectors. Among the government’s complaints, the market pressure caused by cheap steel imports from China stands out.
Cawe noted that ITAC received 150 responses as part of the review and evaluated more than 600 tariff codes. The commission will determine whether the current steel duties provide adequate protection, whether more steel products should be imported under control, and, if necessary, whether more comprehensive protection measures should be implemented through an emergency declaration.
Source: Reuters
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