South Africa, facing the prospect of ArcelorMittal South Africa (AMSA) closing two steel mills crucial to the local manufacturing industry, has begun a review of import tariffs on the metals and is proposing other methods of protecting the industry.
A unit of the country’s Department of Trade, Industry and Competition took a legal step toward raising tariffs by issuing an official request for public comment on potentially raising tariffs on imported steel, and putting in place measures to cut the costs of steel raw materials such as iron ore, scrap and coking coal.
“The South African industry faces numerous challenges, including an influx of low-priced, and often sub-standard, imports,” the International Trade Administration Commission said in the government gazette on Wednesday.
The review comes as the government is locked in talks with the local unit of ArcelorMittal, which has said it plans to close down two mills producing products that are crucial for the local automotive, mining equipment and construction industries. Among its complaints is a flood of cheap imported steel from China.
The unit, known as Itac, also proposed an import surveillance mechanism to curb evasion of import duties and other fraudulent activities related to steel imports. It additionally suggested that the import of some grades of steel would require applications for import permits.
The South African review comes as the administration of US President Donald Trump slaps tariffs on steel and other imports, potentially driving producers of the metal to seek other markets including South Africa.
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