Promoting Dialogue on Trade Reform in South Africa

The South African Trade Policy Review draft document calls, inter alia, for a strategic review of tariffs to support industrial development. In the document the Department of Trade and Industry (the dti) argues that trade liberalisation embarked on in the 1990s has not been able to transform South Africa’s (SA’s) production and exports away from resources; hence it asserts the need to subordinate trade policy to the National Industrial Policy Framework (NIPF) in order to promote such diversification.

According to the draft document, tariffs will be raised/reduced where appropriate. This “strategic tariff policy” is currently being implemented on a case by case basis, with reviews of some selected lines already completed.  The International Trade Administration Commission (ITAC) of South Africa is the lead agency tasked with managing the proposed extensive review of SA’s tariffs.

Clearly tariffs are an instrument of industrial policy, and therefore a strategic approach to managing them seems sensible. However, unless the process is conducted transparently there is a risk that  it may be captured by strong lobbies or ‘rent seekers’. Moreover, the dti’s Trade Policy Review document does not indicate when protection, if instituted, would be withdrawn nor how the intended benefits would be monitored. Therefore, in order to promote transparency, this public forum will attempt to assess South Africa’s tariff review process and the associated methodology undertaken for tariff investigations. 

Another key instrument of industrial policy is subsidies. Their use is subject to a set of WTO disciplines, which are being tested as the global financial crisis bites deeper. Consequently, the forum assessed the efficacy of using subsidies to support targeted industries, their WTO legality, the scope for SA to pursue them, and the likely form they could take in the following manner: 

08h30-09h00                      Registration/Tea & Coffee 

09h00-09h10                      Welcome and introduction

                                           Dr Mills Soko, Senior Lecturer, UCT GSB;

                                           Peter Draper, Programme Head, SAIIA

09h10-11h00                     Session 1: The global economy beyond the financial
                                          crisis: Implications for South African Trade and Industrial
                                          Policies

                                         This session assessed the global economy post the global 
                                         financial crisis. Emphasis will be on trade policy and emerging
                                         trade protectionism.

                                          Moderator: Dr Eltie Links, University of Stellenbosch School
                                                            of Business, SA’s former Ambassador to the EU,
                                                            & SAIIA EXCO member

                                          Presenter: Dr Marcus Noland, Deputy Director, Peterson
                                                          Institute of International Economics,
                                                          Washington [presentation]     

                                          Discussants: Prof. Raymond Parsons, Deputy CEO, BUSA

                                                              Prof Nicola Viegi, Associate Professor, University
                                                              of Cape Town

11h00-11h30                      Tea/Coffee Break

11h30- 12h45                     Session 2: Tariff review process in South Africa

                                           Moderator: Mr. Tsidiso Disenyana, Deputy Programme Head,
                                                             SAIIA

                                           Presenter: Mr. Siyabulela Tsengiwe, Chief Commissioner,
                                                            ITAC [presentation]

                                           Discussant: Dr. Trudi Hartzenberg, Executive Director,
                                                              TRALAC

12h45-13h45                      Lunch

13h45-15h30                      Session 3: The role of subsidies in South Africa’s 
                                           industrial policy

                                            Moderator: Mr. Mike Spicer, CEO, Business Leadership
                                                               South Africa

                                           Presenter: Mr. Nimrod Zalk, Deputy Director General, 
                                                            Department of Trade & Industry [presentation]

                                           Discussants: Mr. Hilton Zunckel, Director, Trade Law
                                                               Chambers
                                                               Mr. Cedric Gina, President, NUMSA

15h30-16h00                      Tea

16h00-17h30                      Session 4: Transparency in trade and industrial policy
                                                              making:

                                          Moderator: Ms. Joanmariae Fubbs, Chair: Portfolio Committee 
                                                             on Trade & Industry, Parliament

                                          Presenter: Mr. Bill Bowen, Principal Consultant, ITS Global,
                                                           Australia [presentation]

                                          General discussion

17h30-18h00                      Summary and Closure

                                           SAIIA/UCT GSB

18:00                                  Reception cocktail