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 steelindustry is facing 47 anti-dumping and anti-subsidy investigations fromimporting countries, accounting for one-third of the total cases of Vietnamesegoods, according to a report from the Trade Remedies Authority of Vietnam underthe Ministry of Industry and Trade (MoIT).
According to Pham Chau Giang, deputy director ofthe authority, steel is subjected to the highest number of tradedefence investigations in the world because it is produced by manycountries 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 toapply safeguard measures to the entire steel industry. That is not to mentionthe fact that other countries have increased the number of anti-dumping andanti-subsidy investigations of specific steel items and specificcountries,” Giang said.
According to the Organisation for Economic CooperationDevelopment (OECD), the global oversupply of steel was nearly 900 milliontonnes in 2017, most of which came from China.
Giang said the oversupply was caused by theslowdown of the world economy, which resulted in losses for manysteel enterprises, and by the return of trade protectionism.
“Although Vietnam’s steel products are beingheavily investigated by many countries, Vietnamese steel enterprises still havehigh growth rates in production and exports in the region,” Giang said."Not every investigation has caused Vietnam’s steel products tobe subjected to tax and damages.”
For example, Giang said Indonesiahad recently decided to terminate the application of safeguard measures onVietnamese cold steel sheets after Vietnam sued the World Trade Organisation(WTO) for those measures, which Vietnam said violatedWTO regulations.
In addition, the MoIT has also cooperatedwith the Vietnam Steel Association and export enterprises to prove thatVietnamese exporters do not dump and do not receive subsidies from theGovernment. "Many investigation cases have been conducted, but notall are subject to taxes, so they still could export," he said.
“This result does not only benefit businesseswho are facing investigations, but also creates a positive precedent forfighting against similar cases in the future, especially in the contextof protectionism, which has increased in the world,” Giang added.
In the domestic market, Vietnam has takenaction to protect its domestic market, which is facing pressurefrom China’s low-quality steel products, which are prevented from exportby some countries but can spill over into Vietnam.
Giang said the the Trade Remedies Authority ofVietnam was in the process of finalising the "white book" on tradebarriers for steel products, which is expected to be announced at the end ofthe second quarter this year.-VNS/VNA
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