S.African trade body recommends duties to curb steel imports

JOHANNESBURG: A South African government trade body looking into the country's struggling steel sectorproposed import duties starting at 10% to defend the industry from an influx of imports mainly from China.

AI Brief

South Africas steel industry is struggling due to oversupply, weak demand, and high costs, prompting a government review.
ITAC recommends emergency tariffs of 10% on steel imports under WTO rules to protect local producers and jobs.
Global trade tensions and dumping fears - including actions by the EU, UK, and Trump-are worsening the situation.

The International Trade Administration Commission 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 industry.

ITAC recommended the government takes emergency action under World Trade Organisation rules to defend the sector and proposed import duties starting at 10% on steel products, it said.

Imports are estimated to meet around 35% of total domestic consumption, leaving companies such as ArcelorMittal South Africa ACLJ.J, the country's biggest primary steel producer, at risk of collapseand putting thousands of jobs in danger.

Among its preliminary findings, ITAC said "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 suspend or withdraw tariff concessions if "any product is being imported in such increased quantities and under such conditions as to cause or threaten serious injury to domestic producers".

ITAC called on policymakers to consider whether the trade conditions amount to an emergency in terms of the WTO rules, its Chief Commissioner Ayabonga Cawe told Reuters in an interview.

Cawe said 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.

U.S. 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, said its initial findings would not become final until it has received and reviewed feedback from the public over the next two weeks.

It said in a notice 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".