AMSA vs the Steel Downstream:  Steel Industry: A victory in a battle that should never have been

AMSA vs the STEEL DOWNSTREAM

STEEL INDUSTRY

A VICTORY IN A BATTLE THAT SHOULD NEVER HAVE BEEN

by Gerhard Papenfus

Dear Steel Industry employer

During the course of 2020, AMSA applied for a 120 percent safeguard duty on top of the 10 percent ad valorem duty that is already in place. This safeguard duty was in respect of certain long steel products on which AMSA had an absolute monopoly.

When NEASA published a circular in this regard, AMSA denied this publicly, among others stating that NEASA is spreading fake news.

NEASA formally opposed AMSA’s application at the International Trade Administration Commission (ITAC). The good news is that, after many months, ITAC announced last week (click here to view) that they have rejected AMSA’s application and that Minister Patel accepted ITAC’s recommendation.

However, the mere fact that Government entertained this application for so many months, had a severe effect on the already embattled construction industry. With an application of 120 percent looming, and with the risk of it being implemented with the shipment on its way to South Africa, the merchants were reluctant to import.

The situation was exacerbated by the other duties already in place and the steel shortages created by AMSA’s inability to supply the market. The steel downstream’s inability to import the shortfall of steel, caused a hammering of the construction industry.

There is, however, no time to be complacent. There is still pending at ITAC, a 10 percent duty application on nine new tariff codes of steel products. During the course of 2020, NEASA brought an urgent application to prevent ITAC and Minister Patel from approving and introducing these duties. This application was temporarily withdrawn, but will be continued with, should these tariffs on the nine codes be implemented.

NEASA, once again, expresses its sincere gratitude to those members that contributed financially to make this application possible.

We also, once again, call on Government to remove the duties on all steel products to stop the carnage of job-losses in the industry.

Gerhard Papenfus is the Chief Executive of the National Employers’ Association of South Africa (NEASA).

For more information:
NEASA Media Department
media@neasa.co.za