More price hikes loom as tyre producers ask for higher duties on Chinese imports
Bruce Whitfield interviews Donald MacKay, Director at XA International Trade Advisors.
- The Money Show
- Bruce Whitfield
- Tyres
- Transport costs
- Donald Mackay
- Continental
- Chinese imports
- Bridgestone
- TIASA
- SATMC
- Tyre Importers Association of SA
- South African Tyre Manufacturers Conference
- Goodyear
The cost of imported tyres could jump by 41% if a grouping of domestic manufacturers has its way, was the warning on Tuesday from the Tyre Importers Association of South Africa (Tiasa).
The South African Tyre Manufacturers Conference (SATMC) wants government to impose anti-dumping duties on Chinese tyre imports.
Its members are Continental, Bridgestone, Goodyear, and Sumitomo.
Tiasa is opposing the application to the International Trade Administration Commission (Itac).
(For more detail read the article “SA may hit Chinese tyres with heavy import duties – that will drive up fares, warns taxi industry”.)
The application is still being investigated for consideration emphasizes Donald MacKay, Director at XA International Trade Advisors.
Tiaso is a client of the company.
MacKay explains the SATMC’s reasoning for higher tariffs on imported tyres.
The motivation follows the theme that most anti-dumping applications do – they’re struggling with competition from China, they’re suffering injury from all of these imports and the world looks fairly grim for them, they say, if the Chinese imports continue
Donald MacKay, Director – XA International Trade Advisors
He says there isn’t enough information from the applicants yet to say definitively whether the prices of imports dramatically undercut those of local tyre producers.
Any other region in the world can supply tyres without being affected. Having said that though, China is the dominant supplier and there is a fairly large price difference between China and the second biggest supplier which is Japan.
Donald MacKay, Director – XA International Trade Advisors
Our government doesn’t appear to be too shy of levying large imports on most things at the moment, so it’s certainly a possibility.
Donald MacKay, Director – XA International Trade Advisors
RELATED: Taxi bosses threaten to shut down the country over fuel price hikes
MacKay says what they are most worried about is the impact on South Africa’s transport sector.
That has a knock-on effect into absolutely everything else.”
For more detail, listen to the interview below:
This article first appeared on CapeTalk : More price hikes loom as tyre producers ask for higher duties on Chinese imports
