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MPs demand time reduction for duty imposition on imports
Jun '10
In order to aid susceptible firms ward off destruction, Members of Parliament (MPs) have urged the International Trade Administration Commission (Itac) to speed up implementation of protectionist measures.

MPs believe that Itac takes too long to tackle tariff reform applications and hence, firms under threat, who have appealed for backing, are exposed to low-priced imports for longer periods of time.

The most obvious example, of Itac's delayed response to tariff applications is the domestic textile and apparel industry, which has been destroyed. Incessant requests for immediate implementation of protectionist measures against the inflow of cheap Chinese goods fell on deaf ears.

This resulted in to shut down of numerous firms and thousands of job losses. By the time the protectionist measures came into practice it was too late.

The Parliament's trade and industry committee is resolute towards reduction of time for implementation of protectionist measures by Itac, so that, they can passively provide backing to the textile and apparel industry. Itac should not under-estimate the industry's ability to survive in the market. The committee is yet to approve a report for the same.

According to the committee, South Africa should opt for progressive approach towards tariffs so that, they are implemented in a planned manner, which will in-turn help in the growth of the domestic industry. As per the report, private players should also be encouraged to acquire more domestically manufactured goods.

However, the most important aspect of the industrial policy action plan is to pull out government's multibillion-rand yearly stimulus package to promote the domestic industry. But the committee prefers that private players too partake in accumulating funds for reviving the domestic industry, by linking it to probable import replacement projects.

Fibre2Fashion News Desk - India

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