A critical analysis of the use of anti-dumping regulation in Southern African Customs Union (SACU) : a case of Botswana

Abstract

This paper critically analyses the use of anti-dumping regulation in the Southern African Customs Union (SACU) with specific reference to Botswana. Dumping takes place where products are introduced into the commerce of another country at less than its normal value, if the export price of the product exported from one country to another is less than the comparable price, in the ordinary course of trade, for the like product when destined for consumption in the exporting country. Anti-dumping duties are an internationally-recognised exception to three core WTO principles namely, bound tariff commitments, most-favoured-nation MFN) and national treatment. The use of anti-dumping in SACU has always been in accordance with existing WTO rules. The new SACU Agreement has important implications for the anti-dumping regime within the customs union. It changed the way in which tariff decisions, including anti-dumping tariffs, are made and it also requires member states to develop legislation on contingency trade remedies such as anti-dumping for the region and to establish national bodies to administer these remedies within different countries. The SACU council has given mandate to the International Trade Administration Commission of South Africa (ITAC) to undertake all trade remedies investigations and imposition of the necessary duties. From the inception of ITAC till now ninety-five percent (95%) of all anti-dumping applications filed at ITAC alleging dumping are instituted by South Africa industries. Thus, only five percent (5%) of all anti-dumping applications are from Botswana, Lesotho, Namibia and Swaziland (BLNS countries). The findings in this paper reveal that Botswana has never filed an application seeking protection of any of its industries. In terms of Article 14 of the SACU Agreement Botswana is in the process of establishing its national body like ITAC. The argument is that, since Botswana has never filed for any trade remedy how effective will this national body going to be? Therefore, critically analyzing the use of anti-dumping regulation is very crucial for Botswana as a SACU member. Such analysis will help assess the effectiveness of SACU institutions such as the tariff board and the Botswana national body to be established.