Chairperson, I would like to thank the Minister for the answer. I think the hon Minister will understand that the local wheat production industry has decreased, in terms of the area planted, by 52,7% since 1997, due to these uncompetitive prices and the scenario sketched.
The question is: Is the Minister considering introducing an import tariff in line with the World Trade Organisation, WTO, Rules, which she has just mentioned, to stimulate local wheat production for South Africa to become self-sufficient again?
The import levy system used by government before 2003 imposed levies of up to 34%, while thereafter it was replaced by an import tariff which varied between zero and 2,32%, which resulted in huge losses to producers and consequently also a decline in the production of wheat.
Due to this decline in production, South Africa currently imports 1 million tons of low-grade wheat, resulting in the industry losing local producers, thousands of job opportunities, as well as hard-earned foreign exchange. Thank you.
The MINISTER OF AGRICULTURE, FORESTRY AND FISHERIES: Chairperson, the farmers and farm organisations have, over a number of years, approached the International Trade and Administration Commission, Itac, where they experienced unfair trade, and the commission has always investigated such requests.
The wheat industry has recently approached the Minister of Trade and Industry as well as the Minister of Agriculture, Forestry and Fisheries regarding the possibility of import tariffs to stimulate the wheat industry. We have invited the organisation to apply and put their request in writing in order to be considered.
We, as the Department of Agriculture, Forestry and Fisheries, also developed an Agricultural Tariff Policy Framework for consideration by the DTI at its International Trade and Administration Commission. We are, in particular, looking at the application of a tariff policy on agricultural products. Thank you.