Vietnam invokes WTO safeguards on steel imports
VOV.VN - Import surges of colour-coated iron sheets from China and the Republic of Korea (RoK) have resulted in the Ministry of Industry and Trade (MoIT) initiating the process of invoking emergency safeguards.
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Specifically, the Agreement on Safeguards and the General Agreement on Tariffs and Trade (GATT) 1994 allow for emergency action on imports, should a member be faced with an import surge "in such increased quantities and under such conditions as to cause or threaten serious injury to domestic producers... of like or directly competitive products."
The basis for the MoIT requested safeguard measures rest on a petition filed on May 24 with the Vietnam Competition Authority by the Nghiem and Chinh Law Firm, representing three local producers – Dại Thien Loc Joint Stock Company, Nam Kim Steel and Ton Đong A Company.
That petition alleges imports of colour-coated iron sheets into Vietnam surged nearly one and one-half fold to more than 642,000 metric tons and nearly doubled in value during the two-year period from 2013 to 2015.
It also asserts that the surge, substantially all of which originated from steel manufacturers conducting their operations from China and the RoK, has and continues to cause the petitioner domestic producers who make competitive products to suffer serious irreparable injury.
The next step in the process is for the MoIT to formally lodge the complaint with the WTO safeguard committee.
Products subject to these safeguard measures include metal-plated and colour-coated iron sheets, coils and roofing sheets with the trade codes: 7210.7010, 7210.7090, 7212.4010, 7212.4020, 7212.4090, 7225.9990, 7226.9919, and 7226.9999.
