Import protection granted to ArcelorMittal SA is a slap in the face for local manufacturers who need to buy steel at competitive prices to be competitive. All attempts to stop the implementation of safeguard duties have failed. According to an announcement by the Department of Trade and Industry, safeguard duties came into effect on August 11. From this date import duties of 22% (10% customs and 12% safeguard duties) will be paid on all imports of hot rolled steel. After the visit by Lakshmi Mittal, the owner of ArcelorMittal, to President Jacob Zuma, and the resulting broad-based black economic empowerment deal announced by ArcelorMittal SA, it was quite clear that the implementation of safeguard duties were inevitable, regardless of all the arguments to the effect that the introduction was nonsensical and would be seriously harmful to the downstream industry. The Department of Trade and Industry’s consultation with the downstream industry was a farce, and was simply done to pay li...

Subscribe now to unlock this article.

Support BusinessLIVE’s award-winning journalism for R129 per month (digital access only).

There’s never been a more important time to support independent journalism in SA. Our subscription packages now offer an ad-free experience for readers.

Cancel anytime.

Would you like to comment on this article?
Sign up (it's quick and free) or sign in now.

Speech Bubbles

Please read our Comment Policy before commenting.