EU Safeguard Action.
ITAC issued an essential facts letter,to which we have responded.
The next step is for ITAC to propose a safeguard duty to Minister Davies,who will then discuss the recommendation with the Trade and Development Committee,consisting of SA and EU members.
It appears as if ITAC is seeking a duty in the order of 35%.
We are still of the view that an investigation initiated under the TDCA agreement between SA and the EU cannot simply be converted into an EPA(the new agreement with the EU,replacing the TDCA) investigation and finding.
As pointed out before,the two agreements differ greatly and we believe, and have been legally advised,that it would be unlawful for the SA Government to proceed with the safeguard under the new agreement and there is simply no provision for such action in terms of the EPA.We believe that if they wish to proceed,a totally new investigation needs to be commenced in terms of the EPA.
We have served legal papers on the DTI and SAPA to this effect.We now await for them to file their responses.