South Africa Imposes 10 Per Cent Customs Duty On Certain Steel Products

South Africa Trade and Industry Minister, Rob Davies said on Friday the country would introduce a new 10 per cent customs duty on certain steel products.
Davies said in Cape Town that the aim was to protect the local manufacturing industry from cheaper Chinese steel imports.
Cheap imports from China are hurting steel makers in South Africa, which currently does not have import duties on steel.
As many as 200,000 jobs are at risk due to a global supply glut of the commodity, a steel firm ArcelorMittal South Africa, has warned.

South Africa Trade and Industry Minister, Rob Davies said on Friday the country would introduce a new 10 per cent customs duty on certain steel products.
Davies said in Cape Town that the aim was to protect the local manufacturing industry from cheaper Chinese steel imports.
Cheap imports from China are hurting steel makers in South Africa, which currently does not have import duties on steel.
As many as 200,000 jobs are at risk due to a global supply glut of the commodity, a steel firm ArcelorMittal South Africa, has warned.
Following complaints from ArcelorMittal and SAFAL Steel, Davies said the country would impose a 10 per cent customs duty on zinc-coated/galvanised steel, aluminium-zinc coated steel and colour coated steel.
Previously there was no duty payable.
However, the tariff increases would be subject to several conditions.
Among these are that there are no price increases for the steel products in question as a result of this tariff adjustment, and that pre-existing commitments to reduce prices on some products were honoured.
Davies said that ArcelorMittal SA would need to invest 250 million rand ($19 million) in its colour line, and SAFAL an extra 300 million rand in its metal coating line, in 2017.
"Both companies commit to no retrenchments in these production lines over the next three years," Davies said.
The companies were not immediately available to comment.
The World Trade Organisation (WTO) allows countries to raise tariffs by up to 10 per cent to protect local industries.