PRESS RELEASE

9 January 2025

AMSA CLOSURE

NEASA CALLS ON ITAC TO SCRAP DUTIES

The National Employers’ Association of South Africa (NEASA) has called on the International Trade and Administration Commission of South Africa (ITAC) to scrap all protectionist duties on long steel products, with immediate effect. ITAC implemented a 9% safeguard duty on long steel products in June 2024 and an additional 52% anti-dumping duty on structural steel, a subdivision of long steel, in November 2024.

This call follows the notification from Arcelor Mittal (AMSA) that it will be closing its long steel products division and will no longer be manufacturing these products.

The purpose of protectionist anti-dumping duties is to protect local manufacturers against unfair competition from importers.  Although AMSA is not the only local manufacturer of long steel products, it is the only entity that applied to ITAC for the implementation of protectionist duties.

Since AMSA will no longer be a competitor in the market, the duties will no longer serve its intended purpose and, if retained, will now simply be a massive windfall for Government and a financial drag on the steel manufacturing sector, in particular the downstream.  The steel manufacturing sector has been uncompetitive for a long time and is in dire need of any assistance available to it, including access to more affordable imported raw material.

There is seemingly no logical or reasonable justification for ITAC to retain the duties, unless Government views the “stuffing of its collective pockets” as more important than the wellbeing of a pivotal sector of the South African economy.  

ISSUED BY

Gerhard Papenfus

Chief Executive (NEASA)

MEDIA CONTACT

Charis Esema-Onaolapo

Media Liaison (NEASA)

083 393 4435

media@neasa.co.za