Competition Commission helps exporters navigate US tariffs with new Block Exemption

THE Department of Trade, Industry and Competition (the dtic) has announced a significant regulatory measure aimed at aiding exporters as they grapple with new tariffs imposed by the United States.

- BANELE GININDZA

This is as the US additional tariffs require exporters to coordinate their activities in developing joint infrastructure for exports, sharing of market information and coordination of activities to achieve economies of scale and efficiencies that enable them to be competitive, which may have contravened the Competition Act.

During the 19th Annual Conference on Competition Law, Economics and Policy on Tuesday, deputy minister of the dtic, Zuko Godlimpi, revealed that the newly introduced Block Exemption for Exporters will allow businesses to collaborate effectively, without contravening the Competition Act.

Godlimpi said the Competition Commission has contributed to policy changes in response to significant challenges facing the economy, from structural constraints such as energy insecurity, skills shortages, and outdated infrastructure, all of which hinder productivity and investment.

"At the same time, businesses are forced to navigate increasingly complex and concentrated global and local markets dominated by a few powerful players, where shifting regulations and limited access to opportunities make it difficult for emerging markets to compete," he said.