VZCZCXRO0800
RR RUEHDU RUEHJO
DE RUEHSA #2738 2151520
ZNR UUUUU ZZH
R 031520Z AUG 07
FM AMEMBASSY PRETORIA
TO RUEHC/SECSTATE WASHDC 1087
INFO RUEHTN/AMCONSUL CAPE TOWN 4660
RUEHDU/AMCONSUL DURBAN 9040
RUEHJO/AMCONSUL JOHANNESBURG 7181

UNCLAS PRETORIA 002738 
 
SIPDIS 
 
SIPDIS 
 
DEPT FOR AF/S; AF/EPS; EB/TPP 
USDOC FOR JDIEMOND 
USTR FOR PCOLEMAN 
TREASURY FOR TRAND 
 
E.O. 12958: N/A 
TAGS: ETRD ECON USTR SF
SUBJECT: SOUTH AFRICA ISSUES "ESSENTIAL FACTS" LETTER ON 
SAFEGUARD INVESTIGATION OF IMPORTS OF LYSINE 
 
REF: PRETORIA 001833 
 
¶1.  South Africa's International Trade Administration 
Commission (ITAC) has provided post with a copy of its 
"essential facts" letter regarding the safeguard 
investigation of all lysine imports.  As reported reftel, 
ITAC initiated the investigation on May 11 and simultaneously 
imposed provisional safeguard measures for a period of 200 
days. Following receipt and review of comments, ITAC issued 
its "essential facts" letter on August 1, 2007.  ITAC has not 
yet made its final determination and is accepting comments on 
the "essential facts" letter until August 15, 2007. 
 
¶2.  According to the letter, "...the Commission is 
considering recommending to the Minister of Trade and 
Industry that a definitive safeguard measure of 27 percent be 
imposed.  The Commission is, however, of the opinion that the 
imposition of this duty should be conditional upon the 
Applicant (SA Bioproducts) committing to not deviate from its 
current pricing model of not using import parity pricing. 
From the information supplied by the Department of Science 
and Technology and the Applicant, the Commission further 
noted that the imposition of a safeguard measure will have 
positive spin-offs to the development and sustainability of 
the biotechnology industry in South Africa albeit to a 
limited extent." 
 
¶3.  The letter also requests information regarding: 1) the 
strategy of SA Bioproducts to improve its competitiveness; 2) 
the role of SA Bioproducts in developing third generation 
biotechnology in South Africa; and 3) the value or necessity 
of having an operational plant, such as SA Bioproducts', in 
the development of third generation biotechnology. 
 
¶4.  Note:  The Pretoria High Court recently ruled that ITAC's 
provisional remedy of 160 percent was in violation of South 
African regulations because ITAC did not provide other 
concerned parties the opportunity to comment or be heard 
prior to imposition of the remedy.  Post does not know the 
possible impact of this judgment on ITAC's current 
investigation and/or recommendation for final determination, 
but will provide further information upon receipt.  End Note. 
 
 
¶5.  Post has a complete copy of ITAC's "Essential Facts" 
letter and the Pretoria High Court's judgment and can forward 
same via email if requested.  Please contact Trade and 
Investment Officer Leslie Freriksen at freriksenld@state.gov 
to obtain a copy. 
Bost