S Africa can't reduce import duties for India, says senior official

South Africa's high import duties on clothing are a safeguard to protect local manufacturers and cannot be reduced for India, a senior government official said on Monday.

Speaking to a gathering of business people from both the countries, Jayawant Irkhede, the Director of Leather and Footwear in the Department of Trade, Industry and Competetion, said that the tariffs are set by the World Trade Organisation.

This is the most common question I am asked whenever I meet Indian businesses wanting to export to South Africa, Irkhede said at the meet aimed at promoting business between the two countries.

The international partners ask us whether we can reduce the import duties, like the 40 per cent -45 per cent duty on clothing; 30 per cent on shoes and 22 per cent on fabric. It is important to understand that these duties are not given by the South African government. These are the same tariffs provided by the World Trade Organisation (WTO)," he said.

He said that it was difficult for the South African government to reduce the duties for any specific country.

"Wherever I go in India, I am asked why we cannot reduce this because India is not operating in South Africa's space. We tell them sorry, we cannot do it, because these are the safeguards given by WTO to all countries, so that they are protected and don't get wiped out, Irkhede said.

"It's a difficult space for us to reduce those duties for a specific country like India. This is absolutely impossible," he added.

He said where possible, South Africa had reduced duties, such as on leather goods which are imported from India and Pakistan with excise duties of only 15 per cent.

Irkhede said that India is South Africa's third largest trading partner, after neighbouring Eswatini.

China is South Africa's highest trading partner.

He said of the 60 billion Rands that South Africa imports for retail distribution, almost 58 per cent is from China.

India's trade value is hardly about 3.2 billion Rands, Irkhede said as he urged Indian business to look at why this was so.

Irkhede also suggested a dual approach to Indian businesses for South Africa.

Trade is not only about buying and selling. But that can also be manufacturing in South Africa. We also have very strong incentives, which I've not seen with any other government worldwide.

If you register for manufacturing in South Africa on your capital expenditure, we can give you 15 per cent government grant and then we give you another 50 per cent term loan completely interest free, which is a very substantial incentive, he said.