‘Media distorts MIDP review issue’

ALAN PEAT RECENT PRESS reports have suggested that the motor industry development programme (MIDP) might have raised hackles at the department of trade and industry (DoT&I) because of a contravention of the World Trade Organisation (WTO) rules on subsidies. But this is not quite the truth of the matter, according to Roger Pitot, consultant to the National Association of Automobile Manufacturers of SA (Naamsa). The new minister of trade and industry, he told FTW, has made no comment - either for or against MIDP. However, Australia has raised a trade issue on the matter - questioning the export section of MIDP, which effectively grants import benefits to motor manufacturers balanced against the company’s exports. This is a debatable aspect of the MIDP, Pitot added. “As a result,” he said, “a two-year review process of MIDP has been implemented, and this export section has to be looked at in this process. “But it was on the cards anyway, with a review planned for next year.”