Steel industry faces 47 anti-dumping, anti-subsidy investigations

Economy, Vietnam, Vietnam Finance News
Steel is subjected to the highest number of trade defence investigations in the world because it is produced by many countries and is considered a product related to national security. (Photo: diendandatdai.com)

Hanoi (VNS/VNA) – Vietnam’s steel
industry is facing 47 anti-dumping and anti-subsidy investigations from
importing countries, accounting for one-third of the total cases of Vietnamese
goods, according to a report from the Trade Remedies Authority of Vietnam under
the Ministry of Industry and Trade (MoIT).

According to Pham Chau Giang, deputy director of
the authority, steel is subjected to the highest number of trade
defence investigations in the world because it is produced by many
countries and is considered a product related to national security.

“After the US, other countries such as Canada,
Turkey and the European Union have also launched investigations to
apply safeguard measures to the entire steel industry. That is not to mention
the fact that other countries have increased the number of anti-dumping and
anti-subsidy investigations of specific steel items and specific
countries,” Giang said.

According to the Organisation for Economic Cooperation
Development (OECD), the global oversupply of steel was nearly 900 million
tonnes in 2017, most of which came from China.

Giang said the oversupply was caused by the
slowdown of the world economy, which resulted in losses for many
steel enterprises, and by the return of trade protectionism.

“Although Vietnam’s steel products are being
heavily investigated by many countries, Vietnamese steel enterprises still have
high growth rates in production and exports in the region,” Giang said. “Not every investigation has caused Vietnam’s steel products to
be subjected to tax and damages.”

For example, Giang said Indonesia
had recently decided to terminate the application of safeguard measures on
Vietnamese cold steel sheets after Vietnam sued the World Trade Organisation
(WTO) for those measures, which Vietnam said violated
WTO regulations.

In addition, the MoIT has also cooperated
with the Vietnam Steel Association and export enterprises to prove that
Vietnamese exporters do not dump and do not receive subsidies from the
Government. “Many investigation cases have been conducted, but not
all are subject to taxes, so they still could export,” he said.

“This result does not only benefit businesses
who are facing investigations, but also creates a positive precedent for
fighting against similar cases in the future, especially in the context
of protectionism, which has increased in the world,” Giang added.

In the domestic market, Vietnam has taken
action to protect its domestic market, which is facing pressure
from China’s low-quality steel products, which are prevented from export
by some countries but can spill over into Vietnam.

Giang said the the Trade Remedies Authority of
Vietnam was in the process of finalising the “white book” on trade
barriers for steel products, which is expected to be announced at the end of
the second quarter this year.-VNS/VNA

QBCA

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