SOUTH AFRICA: INFORMATION ABOUT PROPOSED

UNCLAS PRETORIA 000889

SIPDIS

SENSITIVE
SIPDIS

DEPT FOR AF/S, AF/EPS, EB/TPP
DEPT PLEASE PASS TO USTR/STROJE, PCOLEMAN
COMMERCE FOR 4510/ITA/IEP/ANESA/OA/JDIEMOND

E.O. 12958: N/A
TAGS: ETRD ENRG SENV SF
SUBJECT: SOUTH AFRICA: INFORMATION ABOUT PROPOSED
REGULATIONS ON PETROLEUM PRODUCTS SPQIFICATIONS AND
STANDARDS

REF: SECSTATE 19075


1. (SBU) Summary. Econoff met with Department of Minerals and
Energy and Department of Trade and Industry officials to
deliver reftel points. In both instances, officials
confirmed that they had not notified the WTO Secretariat of
the revised regulations gazetted on January 13, and seemed
unsure as to whether they would or were required to do so.
The officials also offered their views as to how the
regulations did or did not affect the use of
Methylcyclopentadienyl Manganese Tricarbonyl (MMT) as an
octane raising fuel additive in South Africa. End Summary.


2. (SBU) At the Department of Minerals and Energy (DME) on
February 23, Econoff met with Chief Director for Hydrocarbons
Henry Gumede, Director for Petroleum Regulations Muzi Mkhize,
and Director for Petroleum Policies Elizabeth Marabwa.
Gumede explained that the comment period on the revised
Vehicle Emissions Standards (VES) gazetted on January 13
would end March 14 and that the new standards would be
promulgated by March 31. He stated that DME had reviewed all
available scientific evidence and continued to consult with
the Department of Trade and Industry (DTI),the South African
Bureau of Standards, the Chemical and Allied Industries
Association, as well as other stakeholders. None of the
three DME officials had given any thought to again notifying
the WTO Secretariat of the revised VES released on January
13, but did say that they would to look into it.


3. (SBU) Acknowledging Afton Chemical's concerns that the new
VES would exclude its product, MMT, from the unleaded market
in South Africa (because MMT was relegated to cars equipped
to take lead replacement gasoline from large nozzles),Mkhize
explained that the new regulation did "not even once mention
the nozzle size." He claimed that "exactly the same standard
was being applied to "metal containing" and "non metal
containing" fuel pumps." As far as nozzle sizes on the pumps
were concerned, it was up to the industry to decide which
pumps and nozzles would be used and for what. The Department
of Minerals and Energy had no influence on the decision.
Gumede further explained that DME had looked into it and
"decided that it was not our battle," since, as far as they
were concerned, there was clearly no technical regulation
involved. He then asked rhetorically, "What in our
regulations is saying that we are effectively banning MMT?"


4. (SBU) Mkhize, who chaired the stakeholders meeting on
February 8, made a point of adding that Afton Chemical "was
the only one who showed up (to the stakeholders meeting) with
lawyers," an act which he clearly viewed as offensive.
(Comment: Separately, Afton reported a number of
irregularities inQhe conduct of the day-long stakeholders'
meeting, including the fact that MMT was not raised until the
last 30 minutes, although MMT was first on the revised
agenda. In addition, in contravention to stated rules of the
meeting, which was that all stakeholders should be given the
opportunity to hear comments made by others, one notable
stakeholder opposing MMT was allowed to refuse comment on its
submission because Afton had a lawyer present. End Comment.)


5. (SBU) On February 27, Econoff met with the Director for
Market Access Rudolph Brits at the Department of Trade and
Industry to go over reftel points. Brits confirmed that
South Africa had not notified the WTO of the revised Vehicle
Emissions Standards (VES) released for comment on January 13,
but argued that South Africa had no obligation to notify the
WTO since the proposed VES were based on established
international standards and not formulated domestically. He
explained that the VES was based on "Euro 2 Standards" and
the "Worldwide Fuel Charter," as well as other industry and
international standards, in addition to consultations with
motor vehicle manufacturers, etc." (Comment: Afton claims
that the Worldwide Fuel Charter is not an international
standard, but rather a motor industry document that advocates
an industry position.) Furthermore, Brits said that the
proposed VES were in line with the World Summit on
Sustainable Development. Brits later commented that while
many of the refiners were international companies, the
government would probably endeavor to also consult
internationally on the VES.


6. (SBU) On the role of technical standards supporting the
VES, Brits said that, for the time being, the technical
committee at the South African Bureau of Standards (SABS)


that formulated South African National Standard (SANS) 1598
on unleaded gasoline, was governed by both DME and DTI.
(Note: Afton points out that that SANS 1598 is the standard
referred to in the VES that restricts gasoline containing MMT
to pumps with nozzles that fit only vehicles designed for
leaded gasoline -- vehicles being phased out in South
Africa). However, since DME possessed the operational
expertise needed in this instance, Brits said that governance
of the SABS technical committee on unleaded fuel fell to DME;
the final decision would be up to them. He added that in the
future, governance of all technical committees at SABS may
fall under DTI, since SABS reported to DTI, but no decision
had yet been taken.
TEITELBAUM