INTERNATIONA TRADE ADMINISTRATION

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INTERNATIONA TRADE ADMINISTRATION

• The role of the Board on Tariffs an Trade (BTT)
  in support of the strategic thrust of Industrial
  and Trade Policy

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Historical Background of the BTT

• The BTT is a statutory body which has been in
  existence in different shapes and forms since
  1925.
• The legal basis for its existence is the Board on
  Tariffs and Trade Act No.107 of 1986.
• Its mandate to administer trade extends beyond
  the South African economy to the Southern African
  Customs Union (SACU). The BTT is responsible for
  administering the SACU common external tariff.

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Primary objectives of the BTT

• To enable the active management of the
  relationship between on the one hand the South
  African and SACU market and on the other the
  global trading market in order to ensure that
  the workings of the latter do not entrench
  poverty and inequalities in the country and the
  SACU area.
• In the context of DTIs integrated industrial
  strategy, to facilitate the development of new
  sources of competitive advantage in South Africa
  and the SACU region.
• In a rules based global trading system, to ensure
  that not only does South Africa abide by the
  rules, but that she is also empowered by these
  rules.

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Core Functions Of The BTT

• Ensuring that the lowering of tariffs in line
  with our obligations which arise from the WTO
  agreements does not undermine industrial and
  economic growth.
• Within the framework of our international
  obligations, managing a system of moderate
  protection in order to encourage the development
  of industrial capacity in South Africa and the
  SACU area.

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Core Functions Of The BTT

• Providing a proactive, responsive and effective
  trade defense system for South African and SACU
  industry against predatory and unfair trade
  practices.
• Administering the remaining tariff structure in a
  manner supportive of government efforts to boost
  exports and sharpen competitiveness.

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Key I NSTRUMENTS At The Disposal Of The BTT

• Tariffs in the broader sense to ensure that the
  structure of industry is not distorted by the
  fulfillment of the obligations arising out of the
  Uraguay round of tariff cuts and internal tariff
  reform.
• Trade Remedies ie, Antidumping, Safeguards and
  Countervailing measures, to defend SACU and South
  African industry against unfair trade practices
  and to ensure relief to industry where tariff
  liberalization has adverse effects .

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Key I NSTRUMENTS At The Disposal Of The BTT

• Rebate permits - 90 of the work on this is to
  support the motor industry development Program
  (MIDP), and the development in general of new
  sources of competitive advantage particularly
  for exports .
• Duty credit certificates.
• Import rebate credit certificates
• Import and export permits

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Current Output Per Annum
OUTPUT QUANTITY
TARIFF NVESTIGTNS. 150
ANTI-DUMPING COUNTERVAILING INVESTIGATIONS 20
REBATE PERMITS 1 200
DUTY CREDIT CERTS. 150
IMPORT R.C. CERTS. 2 800
IMPORT PERMITS 20 000
EXPORT PERMITS 10 000
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MAJOR PROJECTS UNDERTAKEN THUS FAR

• WTO Uruguay tariff cuts and domestic tariff
  reform.
• Phase-down program for the textile and clothing
  tariff structure.
• Motor industry development program (MIDP) and the
  mid-term review.
• Tariff dispensation for agricultural products
  (wheat,maize, sugar, dairy products, etc.

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MAJOR PROJECTS UNDERTAKEN THUS FAR

• Development duty on electronic cards.
• SA/EU development and trade agreement.
• SADC free trade agreement.

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Average Industrial Tariffs Post Uruguay All
Lines
Import Weighted 1994 1999 GATT
All Goods 14.4 6.9 15.7
Capital Goods 11.1 7.1 14.3
Intermediate 7.7 3.9 10.7
Consumption 32.2 17.2 26.3

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Average Industrial Tariffs Post Uruguay Minus
Zero Rated Lines
Import Weighted Average 1994 1999 GATT
All Goods 24.2 23.7 20.4
Capital goods 22.1 16.9 20.8
Intermediates 12.5 12.0 13.0
Consumption 40.1 33.3 28.7
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Performance of the MIDP
YEAR VALUE OF EXPORTS (Rb)
1997 6,6
1998 10,1
1999 14,8
2000 17,0
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Anti-dumping And Countervailing Action

• With the opening up of the economy, anti-dumping
  and countervailing action against trading
  partners has increased dramatically.
• This however should not be alarming since
  globally,post Uraguay and with the shift away
  from reliance on tariffs, the use of anti-dumping
  and countervailing measures has in general
  increased.

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Anti-dumping And Countervailing Action

• Furthermore more developing countries are
  increasingly resorting to these measures for
  example while South Africa had 19 antidumping
  cases in 1999, India had 54, the EU 38 and the US
  35.
• Similarly the number of anti-dumping units has
  increased dramatically from 7 active anti-dumping
  units to more than 30 most of which are in
  developing countries.

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Current Structure of the BTT- The Board

• The Board comprises of two full-time and three
  part-time members.
• It meets every Wednesdays to consider petitions
  for tariff changes, trade remedial action, etc,
  from industry and make recommendations to the
  Minister of Trade and Industry.
• In the case of agricultural tariffs and remedial
  action, the Board also consults the Minister of
  Agriculture.

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Structure of the BTT

• The Board is supported by investigative and
  administrative staff drawn from the DTI.
• The investigative staff looks into all requests
  for duty rebates and drawbacks, tariff
  amendments, import and export permits, and trade
  remedies and reports its findings to the Board.

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The Future Of The BTT

• Work is currently underway to disestablish the
  BTT and replace it with a Commission for
  International Trade Administration (CITA)
• Parallel to CITA, DTI also envisages the
  establishment of a Tribunal as well as an Appeal
  Court for international trade matters.

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Reasons For Disestablishing The BTT and New
Structures

• Transformation of DTI entailing the separation of
  administrative and regulatory functions from
  delivery and policy matters in order to enhance
  performance.
• Compliance with the requirements of the WTO
  agreements.
• The need to ensure effective responses to new
  challenges posed by globalization in relation to
  market access and non-tariff barriers to South
  African trade.

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Reasons For Disestablishing The BTT and New
Structures

• The need to provide for the performance of
  additional functions, particularly the monitoring
  of the implementation of trade agreements
  between South Africa and trading partners, and
  providing technical support to sectors of
  industry charged with unfair trade practices in
  other countries.
• The need to enhance the professional and
  technical expertise offered to DTI and the
  Minister of Trade and Industry in their key role
  in the development of the rules based global
  trading system.

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Reasons For Disestablishing The BTT And The New
Structures

• The need to sharpen the technical expertise at
  the disposal of the government when negotiation
  agreements with trading partners.
• The need to afford South African industry
  stability, predictability and transparency in
  international trade administration.
• In the context of liberalization, the need to
  provide South African industry a
  pro-active,responsive and effective trade
  defense and remedial system.

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CONTACT DETAILS

• Nozipho Mxakato-Diseko
• Telephone No. 012-428 7700
• Fax No. 012-428 7702
• e-mail ndiseko_at_dti.pwv.gov.za

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THE END