Mondi has welcomed a provisional 21% safeguard duty on imported A3 and A4 office paper while calling for trade measures that take account of manufacturers, downstream users and consumers.
The measure, announced on October 16, follows a separate recommendation by the International Trade Administration Commission of South Africa (ITAC) to reject Mondi’s application to increase customs duties on certain paper and paperboard products from 10% to 20%.
The rejected application covers three tariff subheadings. Although the two processes are separate, their product coverage overlaps with A4 paper under a subheading included in both.
Mondi said the safeguard remains provisional pending the conclusion of ITAC’s investigation into the imports.
“This presents a critical opportunity to deliver meaningful relief to the local industry and secure the future of domestic paper manufacturing in South Africa,” Mondi Public Affairs and Transformation Director Sandile Ngcobo told Freight News.
The company also welcomed the broader industry review announced by Trade, Industry and Competition Minister Parks Tau.
Ngcobo said Mondi will continue engaging with ITAC and the department on evidence-based trade measures that consider manufacturers, downstream users and consumers.
Sappi declined to comment on individual ITAC decisions but offered a broader perspective on industrial policy and the different pressures facing paper manufacturers.
“Our overarching position is that industrial policy should not be developed in isolation or focus exclusively on individual sectors such as paper or packaging,” Gareth Cloete, Vice-President: Sales and Marketing at Sappi Southern Africa, told Freight News.
“It should form part of a coordinated strategy that supports domestic manufacturing, protects jobs, encourages investment and strengthens the value chains on which the broader economy depends.”
Cloete said office paper, newsprint and paperboard face distinct market conditions and economic pressures. Tariffs should therefore not be viewed as a standalone solution to manufacturers’ challenges.
Sappi welcomes broader engagement with policymakers as an opportunity to develop a coordinated approach incorporating tariff and non-tariff measures.
“Ultimately, we would like to see an approach that supports fair competition, encourages investment, protects local manufacturing capacity and jobs and strengthens the long-term sustainability of the industry,” Cloete said.
