South Africa’s International Trade Administration Commission (ITAC) has rejected Mondi South Africa’s request to raise import duties on certain office papers and paperboard from 10% to 20%, a decision confirmed by Trade, Industry and Competition Minister Parks Tau on 6 October 2026.
The bid aimed to protect local producers from increased imports, primarily from the European Union. However, ITAC’s assessment found that increasing the general customs duty would not effectively curb import competition and might instead raise costs for local downstream industries and consumers.
In its report, ITAC stated, “The commission also found there was no prima facie evidence that imports entering under the general column constitute the primary threat facing the applicant.” The commission noted that although serious injury was detected in the Southern African Customs Union (SACU) paper industry linked to a surge in A3 and A4 office paper imports, this issue requires a more targeted approach than a broad customs duty hike.
Following these findings, ITAC launched a separate safeguard investigation on 5 June 2026 into these specific categories of office paper, based on an application by Mondi South Africa, supported by Sappi Southern Africa Limited. Minister Tau approved ITAC’s recommendation to maintain current duties and commissioned a broader sector-wide study into the paper and paper products industry.
Steve Binnie, CEO of Sappi, emphasised the challenge: “Increasing levels of imported product continue to create challenges for local manufacturers and deserve greater policy attention.”
The backdrop to ITAC’s decision includes structural changes in the paper market. Factors such as digitisation, weak economic growth, and shifting consumer behaviours have reduced domestic demand, complicating efforts to shield local producers solely through tariff adjustments. Additionally, South Africa’s trade arrangements with the EU limit the scope for unilateral tariff hikes on imports from that region.
While the tariff bid by Mondi was not successful, the ongoing safeguard investigation may still lead to targeted trade remedies, specifically addressing the surge in A3 and A4 office paper imports. This process remains under review, with implications for South Africa’s paper manufacturing sector and related industrial jobs, including those in Cape Town and the Western Cape.
ITAC’s full report and safeguard documents provide detailed analysis, highlighting the complexity of balancing protection for local industry with broader economic and trade commitments.
The Cape Flats News team will continue monitoring developments, particularly the outcome of the safeguard investigation and any further government decisions affecting local manufacturing and trade policy.