Trade, Industry and Competition Minister Parks Tau has requested the International Trade Administration Commission of South Africa (Itac) to undertake a sector-wide review of the paper and paper products industry and to recommend appropriate trade policy instruments that can drive the industry towards sustainability and resilience.

Itac will review the tariff structure, including relevant trade remedy measures, and investigate the introduction of an import surveillance system for paper and paper products.

The South African pulp and paper industry has made substantial investments in recent years and currently possesses technological innovation and sufficient installed production capacity. Over the past seven years, more than R33-billion has been invested in the sector, Itac says.

The sector's processing capacity is highly intertwined with virgin fibre production, as well as recycled fibre, supporting a range of enterprises and employment.

However, the South African pulp and paper industry is under tremendous strain, particularly in the uncoated paper, newsprint, packaging and tissue segments.

The sector has raised concerned about the growing challenges of rising import penetration, declining demand for print paper and the slowdown in the domestic economy.

Additionally, increasing input costs, particularly electricity and transportation expenses, are placing significant pressure on local manufacturers and squeezing local producers' profit margins.

If these challenges are not effectively addressed, the economy risks losing significant industrial investments, employment opportunities and the economic sustainability of many rural communities that depend on the sector.

Itac may consider, among others, potential injury to the industry and its upstream activities due to the concern of rising imports; the latest trade statistics following the US trade policy changes, the US-Iran war in the Middle East; the conditions in the domestic and global markets; exchange rate fluctuations; and other related factors.

Comments on the notice must be provided in the format of a questionnaire, which can be obtained on Itac's website. Representation should be submitted to the Itac officials listed in the relevant Government Gazette notice by October 15.

Itac will also continue to evaluate ongoing applications for tariff amendments and trade measures in the relevant sector and make recommendations, it says.