The World Trade Organisation (WTO) has confirmed that South Africa has notified its committee on safeguards about the initiation of a safeguard investigation on certain cold-rolled steel products.
In the notification, dated July 29, the International Trade Administration Commission of South Africa (Itac) says the investigation will seek to establish whether the rise in imports into the Southern African Customs Union (Sacu) has caused “serious injury”. Such injury could be in the form of a decline in sales volumes, output, market share, productivity, capacity utilisation and employment.
The period of assessment covers January 1, 2012 to December 3, 2015, while the products covered include flat-rolled cold-rolled steel products imported under the 7209.15, 7209.16, 7209.17, 7209.18, 7225.50 and 7226.92 tariff headings.
The South African Iron and Steel Institute, serving the interests of the Sacu primary steel industry, including ArcelorMittal South Africa (AMSA), lodged the application. It also submitted prima facie information indicating that AMSA has experienced serious injury, owing to the unforeseen rise in imports during the period of investigation.
In a separate safeguard investigation, Itac has already concluded that the Sacu steel industry is “suffering serious injury” as a result of a surge in imports of hot-rolled coil (HRC).
Itac initiated the HRC investigation on March 24 following an application from AMSA, which has already succeeded in ensuring the imposition of import duties of 10% across ten primary steel categories, including HRC.
In the July 22 Government Gazette, Itac reported that its investigation found that HRC imports had surged as a result of “unforeseen developments” and that there was a “casual link between the serious injury suffered by the Sacu industry” and the rise in imports.
However, it has held back from the imposition of provisional safeguard duties until receiving comments from stakeholders as to “whether it will be in the public interest to impose definitive safeguard measures”. A public hearing has been scheduled for August 30.
AMSA said in a recent trading update that it has submitted five safeguard duty applications covering HRC, cold-rolled coil, colour, galvanised and rebar and wire rod.
In the WTO statement confirming the cold-rolled steel products safeguard investigation, interested parties were been given 20 days from the initiation of the probe to make themselves known to Itac.