In the instalment of this column published on April 19, which was headlined ‘Itac publishes draft TDCA safeguard guidelines’, I informed of a notice in the Government Gazette notice of April 3 whereby the International Trade Administration Commission of South Africa (Itac) extended an invitation to interested parties to comment on its draft guidelines and conditions pertaining to a safeguard application in terms of Article 16 of the agreement on trade, development and cooperation (TDCA) between the European Community and its member States and the Republic of South Africa. Comment was due by April 15.

By way of a notice in the Government Gazette of July 19, Itac published the guidelines and conditions. The notice includes an Annexure A, which is a questionnaire titled ‘Application for Safeguard Measures in Terms of Article 16 of the TDCA’.

Article 16 reads: “Notwithstanding other provisions of this agreement and, in particular, Article 24, if, given the particular sensitivity of the agricultural markets, imports of products originating in one party cause or threaten to cause a serious disturbance to the markets in the other party, the Cooperation Council shall immediately consider the matter to find an appropriate solution. Pending a decision by the Cooperation Council, and where exceptional circumstances require immediate action, the affected party may take provisional measures to limit or redress the disturbance. In taking such provisional measures, the affected party shall take into account the interest of both parties.”

The guidelines add to the trade remedy regulations – that is, dumping, countervailing and safeguards – published some time ago. If you are an importer of agricultural products from the European Union, it is advisable to study the Government Gazette notice and the questionnaire.

Compact Fluorescent Lamps
The proposed creation of a rebate provision for nonlinear glass tubes (envelopes) equipped with mounting and leading-in wires, classifiable under tariff heading 85.39, for the manufacture of compact fluorescent lamps (CFL) classifiable under tariff subheading 8539.31.90.

The proposed amendment of Rebate Item 316/8504.10/01.06 to change the minimum power rating from 8 W to 5 W for electronic ballasts used in the manufacture of fluorescent discharge lamps (excluding ultraviolet lamps) falling under tariff subheading 8539.31.90, with a power rating of 5 W or more but exceeding 23 W. The application was lodged by Eveready, which argued that support is needed for the CFL manufacturing industry in the Southern African Customs Union region and for the national initiative to develop the local green economy, and that a rebate provision would lead to job creation.

Comment is due by August 16.

Illuminating Kerosene Draft Rules
Comment on the proposed substitution of paragraph (f) in Additional Note 1 to Chapter 27, relating to the requirements for illuminating kerosene, is due by August 5. The substitution reads: “(f) ‘illuminating kerosene’, being products intended for use, advertised for use, put for use or otherwise marketed or disposed or disposed of for use as fuel illuminating or heating distillation: Final boiling point not exceeding 280 ºC, flash point (IP170): minimum 38 ºC, smoke point: minimum 23 mm.”

WTO 2013 World Trade Report
On July 18, the World Trade Organisation (WTO) published its ‘2013 World Trade Report’, which emphasises that the future of world trade and the global trading system will be shaped by a range of economic, political and social factors, including technological innovation, shifts in production and consumption patterns, and demographic change.

The report notes that dramatic decreases in transport and communication costs have been the driving forces behind today’s global trading system. According to the WTO, geopolitics has also played a decisive role in advancing and reinforcing these structural trends.

The WTO indicates that, during the last 30 years, trade in merchandise and commercial services increased by about 7% a year on average, reaching a peak of $18-trillion and $4-trillion respectively in 2011. If trade is measured in value-added terms, services play a larger role.

Between 1980 and 2011, developing economies raised their share in world exports from 34% to 47% and their share in world imports from 29% to 42%. Asia is playing an increasing role in world trade.

For a number of decades, world trade has grown on average nearly twice as fast as world production. According to the WTO, this reflects the increasing prominence of international supply chains and, hence, the importance of measuring trade in value- added terms.

WTO simulations show that, in a dynamic economic and open trade environment, developing countries are likely to outpace developed countries in terms of both export and gross domestic product (GDP) growth by a factor of two to three in future decades. By contrast, the WTO expects that their GDP would grow by less than half this rate in a pessimistic economic and protectionist scenario, and export growth would be lower than in developed countries.