Trade Wars

Steel companies urged to build capacity for trade defense investigations

VIETNAM, August 22 –

HÀ NÔI — Building the capacity of steel companies to deal with the growing number of trade defense lawsuits is critical as Việt Nam rapidly integrates robust steel exports.

Steel is one of the industries with the most trade defense lawsuits.

In late July, the United States Department of Commerce opened a duty evasion investigation on steel pipe products imported from Việt Nam.

Mexico’s Secretariat of the Economy also announced on July 28 an anti-dumping investigation into cold-rolled steel imported from Việt Nam.

Statistics from the Việt Nam Steel Association showed that the steel industry faced 68 lawsuits from 2004 to July 2022, including 28 anti-dumping, three anti-subsidy, six anti-dumping and anti-subsidy, and 13 safeguard and eight anti-tax. escape case.

Despite the pandemic, the steel industry still posted an 11.3% increase in steel exports to US$5 billion with a volume of nearly 4.4 million tonnes in the first seven months of that year, in which the value of steel exports to the United States was 11.4 percent.

The association said Vietnamese steel products are growing rapidly in Europe and America with huge increases in the value of steel exports, prompting countries to launch trade remedy investigations.

According to the Trade Remedies Authority of Việt Nam, besides the EU, the United States is a potential market for Vietnamese steel to increase exports, which also means that the steel industry will be subject to more pressure. investigations by the United States.

Lê Triệu Dũng, director of Việt Nam’s Trade Remedies Authority, said steel has traditionally faced trade defense lawsuits because countries want to develop their domestic manufacturing industries.

From a business perspective, a representative of Tôn Đông Á Corporation said that the imposition of trade defense duties on steel products exported from Việt Nam had significantly affected domestic steel production.

Every company should have a strategy for dealing with investigations, and this is likely to continue as the trade wars have not yet shown signs of ending, Tôn Đông Á’s representative said.

Industry insider Nguyễn Văn Sưa said that many companies in the steel industry were small and medium-sized and lacked understanding and attention to trade remedies and quickly fell into a passive state during investigation.

Sưa said it was important for companies to set up a transparent accounting system and equip them with knowledge on trade defense.

The Việt Nam Steel Association has urged steel manufacturers and exporters to focus on building capacity to deal with trade defense investigations.

The Trade Remedies Authority of Việt Nam said it will coordinate with relevant agencies to improve and effectively operate the Trade Remedies Early Warning System. —VNS