COMPETITION ACT: INPUT SOUGHT ON EXPORT PROMOTION DRAFT BLOCK EXEMPTION

COMPETITION ACT: INPUT SOUGHT ON EXPORT PROMOTION DRAFT BLOCK EXEMPTION

• 12 August 2025
• Trade, Industry & Competition
• SA Legal Academy

With the intention of mitigating ‘the economic impact of increased tariffs’, the Department of Trade, Industry & Competition has gazetted a draft export-realted block exemption under the 1998 Competition Act – calling for public comment by 1 September 2025.

Focusing on certain horizontal and vertical practices prohibited under the Acts sections 4 and 5, it is proposed that, once finalised and in force, the draft block exemption would:

• enable firms and associations of firms to enter into agreements intended to facilitate co-ordination in:
  • achieving economies of scale, and
  • in an affected export market destination:
    • sharing and offsetting landed costs
    • sharing export-related market information
    • jointly financing and infrastructure development interventions where necessary (including in-transit points)
    • sharing logistics-related costs such as shipment, storage, freight and insurance
    • developing collective marketing strategies, and
    • jointly negotiating compliance with protocols and quality-related specifications/standards.

Among other things, the proposed block exemption also:

• requires any such negotiations, arrangements and agreements to include opt-in opportunities across the value chain for:
  • firms owned/managed by persons from historically disadvantaged communities, and
  • small, medium and micro enterprises, and
• provides for relate procedural obligations.

Please click the links below for more information:

• draft block exemption
• Act (updated to include all amendments)
• departmental media statement on other measures intended to reduce the impact of US tariff increases

Published by SA Legal Academy Policy Watch

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