TARIFF POLICY IN THE CONTEXT OF INDUSTRIAL POLICY

Issued by: Parliament of the Republic of South Africa

This is to invite all relevant stakeholders to make written submissions for forthcoming public hearings on the above topic to be held on 7 and 8 August 1996, in Pretoria, Department of Trade and Industry.

In terms of the Marrakesh Agreement now being implemented by the World Trade Organisation, all countries are required to move towards reduction of tariffs as part of the global liberalisation process taking place. There are many different perspectives on this process and on the time frames being used.

The Board on Tariffs and Trade in South Africa has commented on these issues as follows:

The Department of Trade & Industry has begun to implement tariff reductions in various sectors.

At the same time the rationalisation of tariff policy is taking place with the following objectives in mind:

• should serve the primary economic aims of the government and form an integral part of the economic policy and the Reconstruction and Development Programme;
• should be reconcilable with the GATT and other international agreements;
• should be applied in accordance with statutory provisions in a transparent way and subject to public participation and public scrutiny;
• should contain general guidelines and norms, but also more specific guidelines and norms that apply to specific types of duties (ordinary customs duties, anti-dumping duties, countervailing duties and safeguard duties), provision for rebate of the duty, provision for drawback of the duty and for industries which find themselves in a fairly unique position.

Various sectors from industry have been critical of the time frame and the rate of reductions in tariffs. This is especially the case where reductions are implemented at rates which is faster than is required in terms of our GATT commitments. As part of our commitment to transparency and public participation our portfolio committee intends hosting public hearings on the question of tariff policy. We however, wish to examine this matter in the context of industrial policy in general. This will provide an opportunity to all stakeholders to make submissions on this issue.

We would also like to encourage people making presentations to our committee to present alternatives to the present process. We would also encourage the raising of related matters such as competition policy and supply side measures at these hearings.

Written submissions should be limited to 3 000 words and include an executive summary which should reach us before 25 July 1996 at: Mr Muzi Khumalo Parliamentary Towers Committee Section 10th Floor Open Plan Area P.O. Box 15 Cape Town 8000

The hearings are convened by:

Prof BEN TUROK, MP MR M.J. NWEDAMUTSWU, MP (CONVENOR OF THE INDUSTRIAL (CONVENOR OF THE TRADE POLICY SUB-COMMITTEE) POLICY SUB-COMMITTEE) 27 June 1996