Tyre industry loses anti-dumping battle

The International Trade Administration Commission of South Africa (Itac) has won its appeal against a High Court judgement in the case of the South African Tyre Manufacturers’ Conference (SATMC) versus Itac. The case related to an application by the SATMC to Itac calling for the imposition of antidumping duties on motor vehicle tyres imported from China. The SATMC alleged that Chinese exporters were dumping their tyres in South Africa and that, as a result, it was suffering material injury. Following a detailed investigation, Itac recommended to the Minister of Trade and Industry that the investigation be terminated without the imposition of anti-dumping duties. According to Itac, the major Chinese exporters that co-operated in the investigation were not dumping and that detracted from the casual link between dumping and the material injury. The Supreme Court of Appeal rejected the High Court’s conclusion that Itac had failed to conduct a proper investigation. Specifically, it reversed the High Court finding that Itac had failed or refused to properly consider on what basis to determine the normal value of the tyres of the Chinese exporters. The SATMC argued that this determination should have been based on the prices in a third country and not, as Itac had done, on domestic (Chinese) prices. It was a marathon court case, which started in 2007. According to an Itac spokesman, the organisation tried to engage with the SATMC outside of the legal system and advised them not to take the legal route because it firmly believed that it had conducted a proper investigation. Itac believes the court case unfortunately prevented constructive and rational engagement between the SATMC and the DTI on finding a strategy for the tyre industry. “It is however not too late to look at a policy response package to the challenges faced by the industry,” the spokesman said. The application was dismissed with costs, including the costs of three counsel.