Presentation to the Portfolio Committee on Trade & Industry ITAC Presentation to the Portfolio Committee on Trade & Industry 22 February 2013 Zoleka Xabendlini Senior Manager: Trade Remedies

Presentation outline Trade remedies Dumping Material injury Causality Investigation process Investigation timelines Other investigations

Trade Remedies anti-dumping countervailing unfair trade practices safeguard: surge of imports

What is dumping? Dumping occurs when a product is exported to another country, at a price which is lower than the price at which the same product is sold in the country of origin.

Purpose To protect the SACU industry against unfair competition. Action can only be taken in instances where it is found that unfair trade practices cause material injury to the SACU industry.

Allegation of dumping: What to prove Material injury/threat Causality

Calculation of dumping margin Normal value (after adjustments) Less Export price (after adjustments) As % of export price

Material injury Actual and potential decline in sales Profits Output Market share Productivity Return on investment Utilization of capacity

Material injury 8. Factors affecting domestic prices 9. Magnitude of margin of dumping 10. Inventories 11. Employment 12. Wages 13. Growth 14. Ability to raise capital

Causal Link Dumping Material injury (and/or threat)

Anti-dumping investigation process 21 days Receipt of application Prep for applicant verification Preparation of merit Approval and place on agenda Merit decision 21 days 7 days 7+18days Identify deficiencies & send Deficiency responses Initiation Notification Exporter & importer Responses 12 days 2 days 37+14 days 14days Verification plan & importer verification Exporters’ verification & reports Comments on verification reports Prelim. Submission and place on agenda 14 days 14+2 days 7 days 10days C Commissioner approval Publication pps’s & report sent out Comments on prelim report Preliminary determi nation 10 days 21+2 days 18 +2days 14+7 days Essential facts letter s Comments Final decision after essential facts Provision for oral hearing Final decision 7 days 18 days 18 days 18 days 3 days Investigation closed Report approval by CC Minister’s decision SARS publication 14 days 14 days 10 days

Authorities’ investigation timelines Authority Time taken European Union 15 months India 12 months Brazil South Africa 10 months United States of America 9 months Canada 7 months Australia 5 months

Other investigations Tyres from China Hexagon fully threaded screws from China Frit from Brazil Bolts and nuts from China

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