Import parity pricing is by no means a new phenomenon. In essence it diminishes the relevance of domestic costs in price determination, rather relying on the price of the imported product as the price dterminant. In May 2013 a Business Day article was headlined "Import prices were seldom much lower than Company’s, customer tells tribunal". (The company’s name is not as important as the principle of import parity pricing). In this column the reasoning for the increase in the rate of customs duty applications is regularly provided. Here just to remind you of a few "… needs to increase its selling prices to recover production costs", "… imports have increased substantially … this has resulted in loss of market share and reduced profits" and "… is suffering serious injury as a result of rapidly increasing imports at declining import unit prices". It is quite obvious that if these tariff increases are granted the price of the domestically produced products will increase due to imported products prices also increasing. Add this to the choir calling for the weakening of the South African rand, which they profess to be South Africa’s true salvation. This seems to ignore the fact that a weak currency is tantamount to destroying wealth. A weak currency is at best a quick fix that may well help manufacturers in the short run, but accounting for South Africa's progressively weakening currency, what do we have to show for it? It can be argued that the enticement of a weak Rand lies in the “natural protection” that it provides. As a result, the imported product becomes more expensive, thus allowing the local manufacturers to increase their prices in an effort to recover costs through increased prices. You will recall a few years ago the rate of customs duty on iron and steel was reduced to a rate of 0% (free) in an effort to eradicate the use of import parity pricing. This however ignored natural protection provided not only by means of a weakening currency but also being deprived of the benefits that domestically manufactured/produced goods provide, namely the ready availability of the goods. In the instance of an increase in the rate of customs duty, it increases the cost of the imported product thus allowing the domestic manufacturer/producer to increase their prices, sometimes just to below that of the imported product, in other words import parity pricing. The increase in application for the increase in the rate of customs duty has not gone unnoticed. A column maybe for another day is how the interest of the consumer (society) is considered, if at all, in tariff applications. Economics 101 will tell you that price is determined based on the interaction between supply and demand. Thus if by means of a tariff or a weakening currency for that matter, the access to a product is restricted then the price of the domestically produced product will rise, to the benefit of the domestic producer and the detriment of the consumer.