The South African Sugar Association (SASA) asked Genesis to assist by examining a concern expressed by the International Trade Administration Commission (ITAC) that SASA’s application for increased protection against imported sugar would harm consumers.
Answering this question required us to analyse the nature and effect of laws and regulations that underpin a complex price-setting process in the domestic sugar industry, and in particular the extent to which domestic prices respond to increases in import prices. This provided the foundation for estimating the maximum possible increase in domestic producer prices in the event that ITAC approved SASA’s application. This in turn also allowed an estimation of potential consumer impacts, which arise through direct sugar purchases and through purchases of manufactured products containing sugar.
Using information from StatsSA Genesis provided critical insights to ITAC which ultimately provided comfort that the granting of SASA’s application would not generate significant consumer harm and would at the same time protect an industry that generates significant investment and employment opportunities in South Africa’s rural areas.