International trade consultant XA Global Trade Advisors has called on the South African government to conduct an urgent review of the impact of import duties on the increasing cost of food and to remove newly imposed duties on imported French fries. This request comes on the back of the International Trade Administration Commission’s (Itac’s) recent imposition of provisional duties on frozen fries imported or originating from Belgium, Germany and the Netherlands. The provisional duties imposed are as high as 190% for some countries.
XA Global Trade Advisors CEO Donald MacKay: “We cannot continue to impose duty upon duty on food and expect it not to harm consumers. The duties on fries specifically have increased the price of fries by 88%, from R16/kg in 2021 to R30/kg in 2022. Duties are not in the public interest. They are just another form of tax that consumers have to bear and have the concerning consequence of increasing the cost of food in an already tightly squeezed consumer market. The time has come to take a hard look at our trade policy and to weigh up its impact on the rising cost of living.”
According to MacKay, Itac imposed the provisional duties on fries as a way to protect domestic suppliers, based on its assumption that imported fries are causing harm to local manufacturers.
Source: engineeringnews.co.za