STEEL INDUSTRY: AMSA's STATEMENTS ARE INCORRECT: NEASA SETS THE RECORD STRAIGHT by Gerhard Papenfus

STEEL INDUSTRY

AMSA’s STATEMENTS ARE

INCORRECT

NEASA SETS THE RECORD STRAIGHT

by Gerhard Papenfus

An Engineering News-article of 12 February 2021 reported on AMSA’s statements that the current steel shortages in South Africa are a worldwide phenomenon and that the introduction of duties is increasing worldwide. Both these statements are incorrect.

In light of AMSA’s inability to supply the market, Government (ITAC) has launched an investigation into the current steel shortages in South Africa and is considering the removal of some duties by the introduction of a rebate-item, in terms of which these products can be imported duty-free.

A survey regarding the possibility and impact of the above is currently being circulated.

In opposition to ITAC’s investigation, AMSA clearly wants to convince Government that the serious shortages are not unique to South Africa. This, however, is not the case. World steel supply has normalised many months ago and any disruption caused by the lockdown had a minimal effect on world steel production.

Secondly, AMSA claims that the use of protectionist duties is increasing worldwide. This is also incorrect:

• On 5 February 2021, the Indian government abolished all countervailing duties (similar to our safeguard-duties) with immediate effect. They also suspended certain duties and capped any remaining duties at a maximum of 7.5%;
• In the USA, where President Donald Trump introduced a 25% duty on the importation of steel, many companies were granted exemption from these duties, still during Trump’s tenure. President Biden has accelerated this exemption-process.

We call on the South African Government to follow suit and abolish the duties.

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

NEASA 24/7 NATIONAL HOTLINE: 086 016 3272
legalhotline@neasa.co.za
(please have your membership number at hand)

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