According to Brink, this will also have a positive effect on the trade balance. However, any factories set up by the Chinese will still have to conform to South African labour law.
It is expected that the quotas against China will open the door to increased imports from countries such as Bangladesh, India, Pakistan and Vietnam, says Brink.
These will be legitimate imports. If these imports increase significantly and cause injury to the domestic industry, the industry could approach Government to impose remedial measures, e.g. anti-dumping duties or normal safeguard measures. These countries certainly have the capacity to harm relatively small (in world terms) South African industry, views Brink.
Tralac or Trade Law Centre for Southern Africa is a not-for-profit organisation, building trade law capacity in the southern Africa region; in governments, the private sector and civil society.
Trade Law Centre for Southern Africa
marketing@alchempro.com
