Trade Body Urged DTIC Not to Extend Scrap Metal Export Ban

SEATTLE (Scrap Monster): The Steel and Engineering Industries Federation of Southern Africa (SEISFA) has urged the Department of Trade, Industry and Competition (DTIC) to not extend the scrap metal export ban in the country, which is scheduled to come to an end in December this year.

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Elias Monage, President, SEISFA noted that the scrap metal export ban creates a disproportionate and policy-induced input cost advantage to only a selected group of producers, for whom scrap metal is an input. He also pointed out the absence of a regulatory mechanism that ensures diligent passing of input cost advantage down the value chain. The ban also opens the doors to World Trade Organization (WTO) contraventions, Monage added.

Taking into account all of the above negative impacts caused by the scrap metal export ban and the fact that it has not been effective as intended, SEISFA strongly urged the DTIC not to extend the ban beyond the deadline of December.

The DTIC had introduced the ban, citing security-related aspects. It was also based on claims that such a ban would curb scrap metal theft incidents, which was reported to be causing material damages to public infrastructure.