Steel industry proactively “coexists” with trade defense lawsuits
Thu, 31 Oct 2024 08:45:00 | Print | Email Share:
Having regularly to respond to trade defense lawsuits is a big challenge for the Vietnamese steel industry, but this is an opportunity for steel enterprises to improve their competitiveness and integrate more deeply into the global steel market.
Vietnam exported US$ 626, US$ 751, and US$ 242 million worth of investigated products to the United States, respectively, ranking 3rd out of 10 countries and territories under investigation, after Canada and Mexico. Photo: T.N |
30% of trade defense cases target the steel industry
On October 3, 2024, the Trade Defense Department (Ministry of Industry and Trade) received information that the Department of Foreign Trade of Thailand (Investigating Agency) had published a gazette on the initiation of an anti-dumping investigation on cold-rolled stainless steel products originating or imported from Vietnam.
Previously, on September 25, the US Department of Commerce (DOC) officially initiated an anti-dumping and countervailing investigation on corrosion-resistant steel (CORE steel) imported from Vietnam.
DOC sent a shortened notice of initiation to the Trade Defense Department with some general information such as the anti-dumping investigation period is the first six months of 2024, the countervailing investigation period is 2023, and the injury investigation period is three years (2021-2023).
Vietnam is one of ten countries and territories under investigation, including Canada, Mexico, Brazil, the Netherlands, Taiwan (China), Turkey, the United Arab Emirates, Vietnam, Australia and South Africa.
These are all countries in the top 10 exporting investigated products to the United States, accounting for 75% of the import turnover to the United States in 2023. In the initiation notice, DOC determined that in the three years 2021-2023, Vietnam exported US $626, US $751, US $242 million worth of investigated products to the United States, respectively, ranking 3rd among 10 countries and territories under investigation, after Canada and Mexico.
According to Mr. Dinh Quoc Thai, General Secretary of the Vietnam Steel Association (VSA), in the first 8 months of 2024, finished steel production and sales reached about 19 million tons (up 9%), finished steel exports are estimated at 8.6 million tons (up 8.5% over the same period in 2023).
Steel products are exported to more than 30 countries, territories and regions around the world such as: ASEAN (26%), EU (25%), United States (15%), Taiwan (4%)... the rest are other countries.
Over the past two decades, along with growth, the steel industry has also faced significant challenges from trade defense cases.
As of August 2024, the steel industry faced 78 trade defense investigations, accounting for 30% of trade defense cases related to Vietnam's export products.
Currently, the United States is the country applying the most trade defense measures against Vietnamese steel.
Enterprises gradually professionalize
Mr. Dinh Quoc Thai assessed that after a period of facing many trade defense investigations, the Vietnam Steel Association and steel enterprises have gradually professionalized, meeting the requirements of the investigation agencies of other countries, along with careful preparation within the enterprises, many cases have achieved remarkable results. For example, in 2019, KADI (Indonesia) announced to stop the decision to impose anti-dumping tax on cold-rolled steel products after two years of investigation; in 2020, Australia ended the anti-dumping and anti-subsidy investigation on precision steel pipes.
Most recently, in 2023, Mexico concluded that Vietnam does not have a special market and the tax rate applied to Vietnamese enterprises (6.4-10.84%) is lower than that of China (24-77%).
According to Mr. Thai, the results of trade defense resistance depend largely on the quality of coordination between related parties, including: enterprises, industry associations, State agencies, in which the role of Vietnam's trade offices abroad is important.
"Vietnam's trade offices abroad play a role in capturing information about the stages, developments, and results of the case and promptly notifying Vietnam. Recently, we have also received early warning information through the Department of Trade Defense, Counselors, etc.
Since then, the association and the business community related to the case have been mentally prepared and have more time to plan a lawsuit when the case occurs," Mr. Thai shared.
In the coming time, VSA recommends that the Ministry of Industry and Trade, Vietnam's diplomatic representative agencies abroad continue to promote activities to support businesses.
The Trade Defense Department continues to make timely recommendations on emerging cases, on techniques, arguments, and advice on implementing cases; support information exchange, present arguments, and views of the Vietnamese Government on the conclusions of the investigation agency related to the policies of the Vietnamese Government.
The Trade Promotion Department continues to support the introduction and connection of trade programs to promote the export of steel products.
In addition, Vietnamese Trade Offices in countries importing Vietnamese steel need to continue to update, warn, and support the clarification of investigation regulations of the Government of the importing country; support the provision of a list of products that the importing country needs, introduce a network of consulting lawyers, and connect businesses with the community of importers, etc.
According to Mr. Dinh Quoc Thai, although trade defense cases are a big challenge for the Vietnamese steel industry, they are also an opportunity for steel enterprises to improve their competitiveness and integrate more deeply into the global steel market.
By: Customs News
Source: https://english.haiquanonline.com.vn/steel-industry-proactively-coexists-with-trade-defense-lawsuits-31905.html
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