Pakistan hits back over anti-dumping duties

The South African coal export industry may lose a potential US$240 million in revenue if the Pakistan cement producers make good on their threat to end their coal procurement deal and import coal from Indonesia instead. This is in potential retaliation against South African cement producers who applied for an International Trade Administration Commission (Itac) investigation into alleged dumping of Portland cement from Pakistan which could result in antidumping duties against cheap cement imports. Pakistan’s Ministry of Commerce reportedly raised this matter with South African counterparts during a meeting of the Joint Trade Commission (JTC) between the two countries last month, but according to news reports out of Pakistan no consensus has been reached on this matter as yet. Industry sources noted that Pakistan cement producers were some of the biggest purchasers of coal from South Africa, with the Asian country buying around 3 million tonnes of coal per annum, worth around US$240 million. This compared to the 1.3 million tonnes of cement – worth US$120 – which is currently imported to South Africa from Pakistan. A spokesperson from Pakistan’s Ministry of Commerce said that the current balance of trade was in South Africa’s favour. “It would completely tip the scales if anti-dumping duties were imposed on cement imports,” he said. The investigation into bagged cement dumping from Pakistan – at a price that is 48% lower in South Africa than the normal value in the country of origin – was launched in August this year and is expected to be completed by January next year, said Foster Mohale, communications manager at Itac. He told FTW that Itac was unaware of previous threats of retaliation with regard to measures imposed on the recommendation of the Commission but noted that the Minister of Trade and Industry, Dr Rob Davies, could take the retaliation threat into consideration in making his final decision around the imposition of anti-dumping duties. CAPTION The Kleinkopje colliery thermal coal mine in South Africa… coal producers could be hit hard if Pakistan looks elsewhere for coal imports. Photo: Anglo American