https://www.engineeringnews.co.za

Radebe cautious on higher tariffs on Chinese steel

Minister in the Presidency Jeff Radebe

Minister in the Presidency Jeff Radebe

Photo by Duane Daws

11th August 2015

By: Natalie Greve

Creamer Media Contributing Editor Online

  

Font size: - +

Amid calls by the South African steel industry for improved tariff protection against the import of inexpensive Chinese steel, Minister in the Presidency Jeff Radebe has cited overarching trade considerations, political alliances and South Africa’s inclusion in the Brazil, Russia, India, China and South Africa, or Brics, grouping as factors rendering the move to higher import tariffs unlikely.

Addressing the media at the Union Buildings, in Pretoria, on Tuesday, the Minister implied that South African exports to the Asian State could be jeopardised should South Africa hike tariffs on one of its largest trading partner’s most significant African export products.

“We’re doing business with China and we’re part of the Brics. We’re [also] in the process of building a State partnership [with China] because we have to.

“So we can’t just put steel tariffs up. China’s a huge economy . . . what happens if they do the same to us?” he put to members of the media.

Increasing import competition had recently enflamed calls for trade protection and had seen steelmaker ArcelorMittal South Africa recently lodge a normal customs duty increase application with the International Trade Administration Commission of South Africa (Itac), alleging injury as a result of increasing steel imports from China.

The company revealed in a recent trading statement that it would make a headline loss a share in the half-year to June 30 that could be as much as 1 400% worse than the 2c/share loss incurred in the corresponding period last year.

This came as several of its local counterparts appeared to be flailing in the price-depressed market, including South Africa steel stalwart and the country’s second-largest producer Evraz Highveld Steel & Vanadium, which filed for business rescue in May.

Radebe, however, cautioned that repairs to the local steel market through the hiking of import charges could not easily be achieved without notable detrimental knock-on effects in other South Africa–China trade areas.

“We have to be careful. [Increasing import tariffs on steel from China] is a matter for discussion.

“South Africa has a long way to go and China is helping with our infrastructure build [and is being] very supportive,” he averred.

Economic Development Minister Ebrahim Patel added via a videolink on Tuesday that the steel protection mechanism matter was currently under consideration by Itac, which would come to a formal conclusion that best suited the interests of all stakeholders.

“Itac is applying its mind to the matter . . . there are a lot of complex issues that need to be considered before it makes a decision and it needs to consider all cases,” he commented.

Radebe and Patel’s comments followed a media briefing at the Union Buildings during which President Jacob Zuma updated journalists on programmes and initiatives prioritised in his State of the Nation Address earlier this year.

Edited by Chanel de Bruyn
Creamer Media Senior Deputy Editor Online

Comments

Showroom

WearCheck
WearCheck

Leading condition monitoring specialists, WearCheck, help boost machinery lifespan and reduce catastrophic component failure through the scientific...

VISIT SHOWROOM 
SAIMC (Society for Automation, Instrumentation, Mechatronics and Control)
SAIMC (Society for Automation, Instrumentation, Mechatronics and Control)

Education: Consulting with member companies to obtain the optimal benefits from their B-BBEE spending, skills resources as well as B-BBEE points

VISIT SHOWROOM 

Latest Multimedia

sponsored by

Photo of Martin Creamer
On-The-Air (15/03/2024)
15th March 2024 By: Martin Creamer
Magazine round up | 15 March 2024
Magazine round up | 15 March 2024
15th March 2024

Option 1 (equivalent of R125 a month):

Receive a weekly copy of Creamer Media's Engineering News & Mining Weekly magazine
(print copy for those in South Africa and e-magazine for those outside of South Africa)
Receive daily email newsletters
Access to full search results
Access archive of magazine back copies
Access to Projects in Progress
Access to ONE Research Report of your choice in PDF format

Option 2 (equivalent of R375 a month):

All benefits from Option 1
PLUS
Access to Creamer Media's Research Channel Africa for ALL Research Reports, in PDF format, on various industrial and mining sectors including Electricity; Water; Energy Transition; Hydrogen; Roads, Rail and Ports; Coal; Gold; Platinum; Battery Metals; etc.

Already a subscriber?

Forgotten your password?

MAGAZINE & ONLINE

SUBSCRIBE

RESEARCH CHANNEL AFRICA

SUBSCRIBE

CORPORATE PACKAGES

CLICK FOR A QUOTATION







sq:0.157 0.208s - 138pq - 3rq
Subscribe Now