A “new dawn” of industrial policy in South Africa? The proposed ‘designation’ framework under the Public Procurement Bill sent to the President for assent
If the President signs the new Public Procurement Bill, we may finally, we may see the light of an industrial policy which works in South Africa. Designation scores a few notable victories here and we’re going to claim some of these victories, because all of the important changes made, were recommendations we sent to the […]
The industrial policy Master’s class ends (or does it?)
The Danish political economist, Torben Iversen, notes that labour-intensive, low-productivity jobs do not thrive in the context of high social protection and intensive labour-market regulation, and without international trade countries cannot specialise in high value-added services. Lack of international trade and competition, therefore, not the growth of these, is the cause of current employment problems […]
South Africa’s Proposed Amendments to the Second Hand Goods Act to Monitor Scrap Metal Trade
Phase 2 of the Scrap metal Policy to Limit Damage to Infrastructure and the Economy (the “Policy”) is in progress. Amendments to the Second Hand Goods Act (SHGA) were published for comment on 17 November 2023. These proposed amendments include: Enforcement of the registration regime for scrap metal sellers At the moment, only the buyers […]
Error correction: Competition Commission steel inquiry
Off to an inauspicious start, my very first Trade Brief, contained an error. I had stated we only had one primary steel producer (ArcelorMittal) benefits from import duties of 10%. This is only true for flat products, although Columbus is apparently starting production of mild steel too and Scaw Metals is setting up a flat […]
Competition Commission steel inquiry
Last week the Competition Commission announced it would be conducting a market inquiry into the steel industry and published a draft terms of reference for comment. This is important because the steel industry is packed choc-a-bloc with trade policies which distort the normal behaviour of the steel market. We have one primary steel producer who […]
The century old embrace of the South African government and the steel industry
A hundred years ago, the Union of South Africa government formulated its first industrial policies to help develop the then infant steel industry. The link between government support and South Africa’s primary steel industry has waxed and waned over the last century but has never entirely disappeared. In 1923, at the AGM of The Union […]
Waste Pickers Integration guidelines contradicts Government actions
The Department of Environment, Forestry and Fisheries, along with the Department of Science and Innovation, published The Waste Pickers Integration Guideline for South Africa. This guideline serves as a model to integrate the informal waste pickers into the formal value chain. There are around 300 000 waste pickers, so integrating them is really important. These […]
Application for a temporary rebate of duty on certain hot-rolled steel (Seriously! Again!)
Duferco Steel Processing applied for a rebate of the normal customs and safeguard duties on tariff codes 7208.27, ,7208.39 and 7225.30 when used in a re-rolling process (this being a massive oversimplification, but the details are noted below). ITAC took the decision to extended the safeguard duties currently in place on hot-rolled steel beyond the […]
Request to increase duties on steel cans
Rheem SA and SA Steelpack have requested a duty increase on steel cans, holding less than 50 litres, which are closed by soldering or crimping (7310.21) or closed in some other way (7310.29). They have requested the tariff codes be split into more detail to better identify the respective size of the cans and also […]
Investigation into the rebate of duty on tinplate
ITAC self-initiated a review into the duties on tinplate imported under tariff subheadings 7210.11, 7210.12.10, 7210.12.90 and 7212.10, in February 2020 (you can read more about this review here). This followed the closure of ArcelorMittal’s tinplate line in November 2019. In the period November 2019 to June 2020, downstream users of tinplate imported R519m worth […]