This is due to an application by the South African Tyre Manufacturers Conference (SATMC) for a dumping margin to be implemented on tyre imports from China. Charl de Villiers, the chairperson of the Tyre Importers Association of South Africa (Tiasa) was on the OFM Business Hour to unpack the application and it's impact on South Africans should it be greenlit by the International Trade Administration Commission (ITAC).

SATMC which is made up of Bridgestone, Continental, Goodyear and Sumitomo Rubber South Africa claim that tyres are being dumped in the SA market by China causing them injury. According to de Villiers SATMC is applying for a dumping margin of between 8% and 69, 97% in additional duties. Early indications are that this translates to a rise in tyres for motorists by between 17% and 41%. 

"The application is currently with ITAC. All the manufacturers and importers have made their submissions to ITAC and they are busy evaluating the whole application. ITAC does not give a date as to when they will finalise their whole investigation. They have 18 months from the date that it was published in the government gazette - being 31 January 2022" explains de Villiers. 

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According to ITAC, sufficient evidence had been submitted and a prima facie case established to enable ITAC to arrive at a reasonable conclusion that an investigation should be initiated on the basis of dumping, material injury, threat of material injury and causality.

Tiasa is amongst those who are opposing the application, adding SATMC's members are also importers of tyres as they cannot on their own cater for the whole of the country. De Villiers warns that should the application be successful, the impact could be devastating for South African consumers, especially taxi commuters.