VN counters Indonesia steel tariffs
VN counters Indonesia steel tariffs
Viet Nam is taking steps to protect local steel exporters' rights in the wake of safeguard measures taken by some import countries.
In the latest move, the country initiated dispute settlement proceedings against Indonesia through the World Trade Organisation (WTO) early last week over safeguard tariffs imposed on Viet Nam's flat-rolled products of iron or non-alloy steel.
According to the Viet Nam Steel Association (VSA), the filing of the complaint will help avoid the risk of possible investigations from Indonesia as well as other import countries.
This move also reflects the Government's stand on protecting the legitimate rights of domestic exporters against violations in the form of trade safeguard tariffs by import countries.
A representative of Viet Nam Competition Authority, the ministry has been collecting information and evidences from domestic companies to settle the matter in line with international regulations and commitments.
The VSA noted that Indonesia's studies and decisions leading to the imposition of the safeguard tariffs on certain Vietnamese iron and steel products were finalised without consulting with Viet Nam.
Nguyen Van Sua, the association's deputy president, said Indonesia's Ministry of Finance imposed safeguard tariffs on certain iron and steel products from Viet Nam for three years starting July 2014 and the tariff imposition can be extended.
According to Hoa Sen Group, the safeguard tariffs remained high at US$430 per tonne in 2014, $371 per tonne in 2015, and $312 per tonne in 2016, and undermined the competitiveness of Vietnamese products.
Tran Ngoc Chu, general director of Hoa Sen Group, has been quoted by as saying that with such tariff imposition, the group's turnover is estimated to decline by about $115 million per year.
Southern Steel Sheet Company noted that the tariff has made steel exports to Indonesia increasingly difficult, while the industry has already been struggling in the domestic market.
Experts urged Vietnamese companies to prepare to deal with the investigation and application of trade defences from import countries amid rapid international integration and export expansion.
