S. Africa accuses RI of dumping paper
S. Africa accuses RI of dumping paper
JOHANNESBURG (Reuters): South African paper giants at the
center of an investigation of unfair business practices on
Tuesday shrugged off the allegations and instead accused
Indonesia and Brazil of dumping paper in the country.
Sappi Ltd, and Mondi Paper Ltd are under investigation by
South Africa's Competition Board.
The probe follows complaints by Michael Bunting, director of
Johannesburg-based Atlantic Paper Supplies, that they were
charging small businesses exorbitant prices on unfair terms,
forcing his company to import photocopy paper from Brazil.
Mondi is part of the Anglo American Industrial Corp. stable
while Sappi is a global supplier and manufacturer of pulp and
paper.
"Sappi has evidence that Brazil and Indonesia are dumping
paper in South Africa and that it is having a significant impact
on the local market for cut paper," Sappi Fine Paper Managing
Director Albert Lubbe told Reuters.
"The Board of Tariffs and Trade has itself indicated in the
Government Gazette last week that there was enough evidence to
justify an investigation of alleged dumping."
Similar views were echoed by Mondi Paper General Manager John
Barton, who said that local production of uncoated wood-free
papers, including photocopy paper, was more than adequate to meet
South Africa's needs.
"These products are often imported at dumped prices. The local
industry has a current application with the Board of Tariffs and
Trade for a dumping investigation," he said.
Earlier, Competition Board Chairman Pierre Brookes confirmed
to Reuters that an investigation was under way and said a report
was about to be finalized.
"We have carried an investigation into the two companies and
we have a report which is about to be finalized," he said.
Atlantic's Bunting alleged that both Sappi and Mondi were
using the anti-dumping action to further their discriminatory
practices.
However, Mondi's Barton said his company would supply paper to
any company on the same prevailing conditions and terms to its
South African customers and merchants.
"Taking into account volumes, product range and the financial
risk involved, we are more than happy to do so and have already
conveyed this to Atlantic Paper Suppliers," he said.
"Major paper distributors and merchants belong to the
Association of Paper Distributors, which subscribes to a code of
ethics to ensure that all papers are imported into South Africa
under the correct code and that appropriate duties, including VAT
(value-added tax) are paid," Barton said.