Under-pressure cement sector wants tariffs | Business | M&G

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Local cement producers are making submissions to the International Trade Administration Commission of South Africa to impose tariffs on cement imports from China and Vietnam in a bid to protect the South African industry.

Local cement producers are making submissions to the International Trade Administration Commission of South Africa to impose tariffs on cement imports from China and Vietnam in a bid to protect the South African industry.

Imports received via Durban increased by 89% to more than 600 000 tonnes, while imports received in the Cape rose by 48% to 209 000 tonnes,” adding pressure to an already struggling construction industry. In 2015 Itac, which sets and investigates tariffs on imported goods, imposed anti-dumping duties on imports from Pakistan after an investigation that found that cement imports from the South Asian country were causing material injury to the local cement industry.

Apart from supply and demand dynamics, local manufacturers are also subject to rigorous regulations, including environmental impact assessments, strict quality controls, and labour and employment regulations. Azar Jammine, the chief economist at Econometrix, says that imposing tariffs in the short term could provide some relief for local cement producers but that for the industry to be protected, huge investment in the country’s infrastructure is needed.

Fast-forward nine years and one of the country’s biggest construction firms, Group Five, had its stock suspended in March after the company filed for bankruptcy protection.

 

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The gov could not protect the poultry industry and it had to shed thousands of jobs,I doubt they will protect the cement industry,or even try.

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