According to BusinessTech, the government has withdrawn a March directive that would have introduced a pre-export verification of conformity programme for certain unregulated Chinese imports. The programme, announced by Trade, Industry and Competition Minister Parks Tau, was slated to start in October but was pulled back after pushback from China, South Africa’s largest trading partner.
The pre-export verification of conformity programme, in plain terms, checks to ensure imported products meet South African quality and safety standards before they leave the exporting country, would have covered items such as aluminium cookware, hair relaxers, sanitary towels and office chairs.
Donald MacKay, chief executive officer of XA Global Trade Advisors, said the abandonment of the checks is a symptom of a weak local manufacturing base that has deteriorated over the past 15 years. His comments are his own analysis and have not been independently verified.
MacKay linked the decline to poor service delivery, mismanaged ports and high crime rates, which he says discourage companies from investing in domestic production. He noted that any standards applied to imports would have to be applied equally to all trading partners and to South African producers, citing the existing compulsory standards on cement as an example.
The adviser also highlighted South Africa’s trade imbalance with China. He estimated that roughly 70% to 75% of South African exports to China are raw minerals, while the country imports higher-value manufactured goods. This pattern, he argues, reflects a manufacturing sector that has largely collapsed, leaving the economy dependent on exporting raw materials and importing finished products.
For small and medium-size enterprises, the decision means continued exposure to cheap imported goods without the protective barrier the proposed checks would have created. MacKay warned that without addressing the structural issues, unreliable electricity supply from Eskom, dysfunctional ports and security concerns, any import-control measure would have limited impact on the underlying trade deficit.
Should the government decide to introduce compulsory standards in the future, it would need to do so in a way that treats foreign and domestic producers alike, ensuring a level playing field. Until the fundamental challenges facing South Africa’s manufacturing sector are resolved, the country is likely to remain a net importer of finished goods.
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