SSA SECONDS SUGAR IMPORT TARIFF INCREASE

MBABANE – The effect of cheap imports from non- SACU states which displace locally produced sugar, prompting stock to either be kept or sold at low value to world markets, is anticipated to lessen.

 This follows South African  Trade and Industry Minister Dr Rob Davies endorsement of the International Trade Administration Commission of South Africa’s (Itac’s) recommendation for an increase in import duties on sugar to US$680 per tonne (about E7 480),as reported by Engineering News yesterday.

Swaziland Sugar Association (SSA) Chief Executive Officer (CEO) Phil Mnisi said they were fully supportive of the move to increase import duties on sugar because it would greatly help towards protection of sugar markets within the Southern African Customs Union (SACU).
Mnisi said the country would derive massive benefits from implementation of the recommendation.

“In fact, we were also part of the recommendation through the Ministry of Commerce, Industry and Trade.

This was because if it gets approved in South Africa, automatically as a country since we sell to SACU. Actually, we would greatly appreciate if the recommendation would be gazetted soonest,” said Mnisi. 

Cheap imports of sugar into the SACU market significantly reduces the returns for the Eswatini sugar industry which supplied to various markets sugar in proportions of 60 per cent into Southern African Customs Union (SACU), 12 per cent to the region (Southern African Development Community – SADC - and Common Market for Eastern and Southern Africa-COMESA), 17 per cent to the European Union (EU), four per cent to the United States (US) and the balance of seven per cent to the rest of the world during the past year.

SSA recently said South Africa and Eswatini as the only sugar producers in SACU share the same concerns about the flooding of the common market by cheap imports from outside SACU.
“We are in solidarity with the South African people who have expressed concerns about these imports,” SSA explained.
SSA’s reaction had been prompted by the march reported by Business Day where over 2000 members of the sugar industry in South Africa marched against an alleged flood of imports mainly from Brazil, the United Arab Emirates.
The march was in line with the appeal Itac to expedite the decision on the application by the South African Sugar Association (SASA) for higher tariffs on imported sugar. 
 “The Eswatini sugar industry appeals to the two governments to work with their SACU partners to ensure that the sugar import tariff into SACU is at a level that protects the domestic industry from such imports,” SSA pleaded.  

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