The American Natural Soda Ash Corporation (Ansac), which has admitted that its members operate as an export cartel in South Africa, is looking to secure exemption from competition legislation in this …
The American Natural Soda Ash Corporation (Ansac), which has admitted that its members operate as an export cartel in South Africa, is looking to secure exemption from competition legislation in this market, applying to the trade and industry department for its industry for exemption from provisions in the Competition Act. The application is the latest episode in a ten-year situation between Ansac and the competition authorities. In the first week of November 2008, Ansac admitted it was fixing soda ash prices in South Africa and agreed to withdraw from the southern African market and pay a fine of ZAR 9.7 million. Now, however, Ansac is trying to maintain its presence in South Africa. With the case finally closed, thanks to the settlement with competition authorities, Ansac has called on a provision in the Competition Act that allows for exemptions from compliance to preserve the economic stability of an industry. The provision foresees that, if the soda ash industry were to be designated by the trade and industry minister, it would qualify it for exemption from the Competition Act. In its application, Ansac said that the purpose of the designation would be to ensure stability and sustainability of soda ash supply in South Africa, given the global shortage of soda ash. Asked whether it intended to continue with the designation application following the settlement, Ansac“s legal representative, Charles Critchlow of Baker & McKenzie, New York, said the company was willing to work with the trade and industry department and consumers in determining the opportunity a designation would present. The complaint against Ansac originally came from soda ash manufacturer Botswana Ash (Botash), which is the only major producer of soda ash in southern Africa. Ansac coordinates the marketing and sales functions of a number of American soda ash producers, in a collaborative arrangement which exists in terms of the US Web Pomerene Act, which allows for this kind of export arrangements, but prohibits companies from operating in alliance in the US market. Legal representative of Botash Martin Versfeld, of Webber Wentzel Bowens, said the company was aware of Ansac“s application and would oppose it. However, the Competition Commission and Botash have still not made submissions to the minister, while glass manufacturer Consol was still reviewing its position.