JAKARTA (TheInsiderStories) – The European Commission announced the opening of an investigation into imports of hot-rolled steel from Indonesia, China, and Taiwan to the European Union (EU) following a complaint from the industry for alleged dumping practices.
In a statement released Tuesday (08/13), the EU executive reported that this investigation was opened following a complaint lodged by the European Steel Association (Eurofer), stating that “imports from these countries [to the EU] are being made at dumped prices and therefore causing injury to European producers.” EU imports of the product from around the world were worth almost 900 million euros (US$1 billion) last year, according to Eurofer.
“The product subject to this investigation is flat-rolled products of stainless steel, whether or not in coils (including products cut-to-length and narrow strip), not further worked than hot-rolled (‘the product under investigation’),” it said.
Dumping is a commercial practice consisting of selling products, goods or services at prices below their fair value. Brussels will now investigate such allegations on the basis of calculating the dumping margin for these products in relation to what is allowed under EU law, thus analyzing possible distortions in the prices of raw materials from Indonesia, China, and Taiwan.
“The complaint requests that the EU executive calculate the dumping margin in line with the EU new anti-dumping methodology,” it said.
In the absence of reliable data on domestic prices for Indonesia and Taiwan, the allegation of dumping is based on a comparison of a constructed normal value (manufacturing costs, selling, general and administrative costs – SG&A – and profit) with the export price (at ex-works level) of the product under investigation when sold for export to the Union, the commission said.
The Commission then has eight months to “gather evidence and decide whether to impose interim measures,” the press release statement said. Such investigations have been recurring as part of a European Commission action plan to combat unfair competition from dumped or subsidized products in the EU.
In this mandate, the EU executive applied trade defense measures to 52 steel products and is investigating seven others.
In the area of trade, the European Commission also announced that it has imposed 8 to 18 percent countervailing duties on imports of subsidized biodiesel from Indonesia. The tariff effective starting today.
“The measure aims to restore a level playing field for EU biodiesel producers”, this after an in-depth Brussels investigation found that “Indonesian biodiesel producers benefit from subsidies, tax benefits and access to raw materials below market prices market,” the commission said in a statement.
US$1: 1.12 Euros
Written by Lexy Nantu, Email: firstname.lastname@example.org