,During the course of 2015, government introduced a 10 percent customs duty in order to protect ArcelorMittal SA (Amsa) against the import of cheaper (and better quality) steel.
According to a government directive, this arrangement should have expired after three years.
"However, it is still in effect" says Gerhard Papenfus, chief exectuive of the National Employment Agency of South Africa (Neasa).
In a statement received by Freight News, Papenfus adds that the custom duties were followed by the introduction of additional 12 percent safeguard duties (which amounted to a total of 22 percent protectionist duties).
During the course of March 2020, Ebrahim Patel; Minister of Trade, Industry and Competition, announced a process towards the drafting of a Steel Master Plan.
"Neasa's view (and we were at all times under the impression that this was the common view), was that the duties protecting Amsa formed an integral part of deliberations towards the establishment of a Steel Master Plan.
"Consequently, we were shocked when we received a notice from the International Trade Administration Commission (Itac) that indicated their intention to entertain Amsa’s application for the continuation of the safeguard duties, which are due to expire on or about October 2020. This flies in the face of the stipulation of the World Trade Organization that such duties may only be applicable for a period of three years."
Papenfus adds that Neasa views this act by Itac as an act of defiance towards Minister Patel’s Steel Master Plan processes, as well as an act of extreme bad faith.
"As if this was not enough, we also received a notice from Itac that the process of implementing import duties on nine new tariff codes, which were previously not included, will continue via video conference.
"To add insult to injury, no mention was made of Neasa’s application to review the existing duties. This application was submitted to Itac on August 12 last year."
Neasa has consistently criticised these duties which are aimed at protecting Amsa but which are to the detriment of the downstream steel industry, Papenfus says.
In an attempt to gauge industry's view about the matter, Neasa is requesting industry representatives to participate in the following survey:
Question for: If you support Neasa ’s view of scrapping all duties, click here: https://docs.google.com/forms/d/e/1FAIpQLScBG_Uyz3IH-w_OMVAXNslT8lUjlso7FAdXTkGWj2H9bqxFqA/viewform
Question against: If you do not support Neasa’s view, click here: https://docs.google.com/forms/d/e/1FAIpQLSfCcE77hQlG-es1feQRezo-eb0fy3mCx0_0aNy5Ej8lViqSNA/viewform
Employment agency takes on ArcelorMittal with survey
03 Jun 2020
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