The world of international trade is complex, because many countries encourage unfair competition by using government subsidies to support exporters of their local products.
That is why just as many countries, South Africa included, impose special tariffs on certain imports because these undercut local manufacturers or suppliers which, in turn, affects their profitability and could lead to job losses.
Recently, tariffs have been imposed on imported tyres in order to protect the local tyre manufacturing industry, which is a significant employer.
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Now, there is a fight between local producers of precut and frozen potato chips and importers of the commodity. The importers want the government to reverse antidumping tariffs on potato chip imports from Belgium, the Netherlands and Germany.
Similar antidumping tariffs on imported chicken were suspended for a year by Trade and Industry Minister Ebrahim Patel in the light of the soaring food price index. The cut chip importers claim the price of the product is also rising sharply, while the local producers argue that the competition from products which are subsidised at source will affect their business and could lead to job losses in South Africa.
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It is difficult to see who’s right and who’s wrong when it comes to food and people are hungry.
