Why is the government protecting foreign-owned ArcelorMittal SA?
The government is imposing stiff duties on imported, hot-rolled steel to the detriment of 10,000 local downstream steel manufacturers, writes Gerhard Papenfus
In a surprise move, the government has notified the World Trade Organisation that it intends to introduce a 12% safeguard duty on top of the existing 10% customs duty on imported, hot-rolled steel. This decision is in direct conflict with the findings of the International Trade Administration Commission (Itac), a statutory body specifically tasked to investigate and advise the government on the impact of import duties on industries. Itac recently published an "essential facts" letter in which it found the introduction of a safeguard duty was not in the public interest. The question is why the government would decide to protect ArcelorMittal SA, a primarily foreign-owned entity, to the detriment of 10,000 South African downstream steel manufacturers and hundreds of thousands of employees. Several sub-questions need asking. First, what was discussed during the meeting between the owner of Arcelor and the president, a meeting that caused a total turnaround in the government’s attitude ...
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