The South African Government has approved an extended 8% safeguard duty on hot-rolled coil, bringing total duty payable to 18%.
That’s according to a statement from the National Employers’ Association of South Africa (Neasa).
“According to World Trade Organization (WTO) rules, safeguard duties may only apply for a period of three years. The previous safeguard duties for this product expired on 10 August 2020,” the statement read.
Gerhard Papenfus, chief executive of Neasa, said that over the past three years ArcelorMittal South Africa (Amsa) had not supplied competitively priced raw materials.
“This decision by government is a blatant move that defies all rules and logic.
“The motive behind this decision is questionable.
“These duties are just another dose of the slow poison administered to the steel industry.”
He said the consequence would simply be an acceleration of the industry’s gradual decline, further contributing to de-industrialisation – resulting in unemployment and poverty.
He confirmed that Neasa had launched an urgent application in the Gauteng High Court to stop government from implementing another set of duties on coated products.
“This matter is set down for 18 August,” he said.