Proposed changes to trade act would ease investigation of imports harmful to 'national security interests'

Proposed amendments to the International Trade Administration Act of 2002 are set to give South Africa's trade watchdog more scope for investigation.

Parks Tau, Minister of Trade, Industry and Competition, has published the new provisions for public comment.

The amendments would enable the International Trade Administration Commission (Itac) to investigate imports that may hurt the country’s national security interests, upon direction of the Minister.

The Commission would also be empowered, upon Ministerial direction, to investigate discriminatory or unreasonable foreign trade practices that adversely affect South Africa's trade or economic interests.

Itac chief commissioner Ayabonga Cawe emphasizes that the provisions would not necessarily give the Commission greater powers, but they will at least give some "legislative underpin to embolden Cabinet and the Minister to instruct us to undertake investigations around national security".

"And I think the issue of the displacement of domestic products relates to the amendment that is proposed in Section 6 of the Act, to allow the Minister to use his powers to regulate imports to protect the national security interests of the country."

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Asked about the automotive sector in this regard and the influx of low-priced Chinese and Indian vehicles into our market, Cawe remarks that this is just one of many sectors subject at the moment to a chronic overcapacity, globally.

"And where you have that manifest in the displacement of existing capabilities at a time when I think supply chains, in very rapid succession have been finding themselves at different inflection or choke points in global supply chains... the sense is that these amendments would result in a qualitative improvement in the landscape of tools that the Cabinet and even the Minister would have in instructing the Commission to undertake probes of different types into foreign trade practices and any trade flows that may have bearing on our national security."

He says these inflection points undoubtedly not only make jobs and investment vulnerable but even access to vital supplies that are crucial to the health, safety and security of South Africans, and even also the functioning of the government.

For more detail, listen to the interview audio at the top of the article