“Increasing tariff duties are not a permanent solution, as they are only meant to buy an industry a short reprieve from overseas competitors.” - Siyabulela Tsengiwe
The International Trade Administration Commission (Itac) has reportedly seen a massive jump in in applications for tariff protection from businesses exposed to competition from imported products, indicating that SA-owned businesses are feeling increasingly threatened.
According to an article published on the Itac site, the weak economic activity globally and falling demand for commodities has led to a “flood” of applications from steel and aluminum producers seeking the maximum allowable import duty on more than 100 product lines.
“There is a much broader picture here,” Trade Law Centre executive director, Trudi Hartzenberg, was cited by daily news publication, Business Day, as saying. “It is due to the trade policy mood in SA that our industries are seeking protection - and not just in one sector of the economy.”
Itac commissioner, Siyabulela Tsengiwe, commented that increasing tariff duties were not a permanent solution as they were only meant to buy an industry a short reprieve from overseas competitors. The idea is that it gives a company or industry a chance to focus on improving its efficiencies and competitiveness so that once the duty is removed it is better able to compete.
The International Trade Administration Commission (Itac) has reportedly seen a massive jump in in applications for tariff protection from businesses exposed to competition from imported products, indicating that SA-owned businesses are feeling increasingly threatened.
According to an article published on the Itac site, the weak economic activity globally and falling demand for commodities has led to a “flood” of applications from steel and aluminum producers seeking the maximum allowable import duty on more than 100 product lines.
“There is a much broader picture here,” Trade Law Centre executive director, Trudi Hartzenberg, was cited by daily news publication, Business Day, as saying. “It is due to the trade policy mood in SA that our industries are seeking protection - and not just in one sector of the economy.”
Itac commissioner, Siyabulela Tsengiwe, commented that increasing tariff duties were not a permanent solution as they were only meant to buy an industry a short reprieve from overseas competitors. The idea is that it gives a company or industry a chance to focus on improving its efficiencies and competitiveness so that once the duty is removed it is better able to compete.
