The International Trade Practice Center on Bloomberg Law® provides in one comprehensive, time-saving resource.
By Brian Flood
Aug. 2 — Vietnam will protect its domestic steel industry by imposing emergency tariffs through 2020, according to a notification released by the World Trade Organization (WTO) Aug. 2.
The duties on semi-finished and finished steel products will start as high as 23.3 percent, but will phase out in stages until they are down to zero.
WTO rules generally bar countries from imposing protectionist tariffs, but they make an exception for “safeguard” actions if a domestic industry is seriously threatened by a surge in imports.
According to Vietnam's notification, the country's domestic industry has suffered serious harm because of a surge in recent years, in the form of lost market share, lowered productivity and lost jobs. The Ministry of Industry and Trade, which conducted the investigation, placed the blame for the import surge in part on excess steel capacity in China.
“The economic crisis in China in recent years and the excess of capacity with the large amount of inventories of steel products in China; and the application of trade remedy measures to certain semi-finished and steel finished products of some countries are considered as ‘unforeseen development' and are the reasons for the surge of imports to Vietnam,” the notification said.
Many U.S. producers and politicians share similar concerns about Chinese overproduction. At the WTO in July, the U.S., along with Canada, the European Union and Japan, said Beijing must do more to reduce its excess capacity. China's Vice Minister of Commerce Shouwen Wang responded that overcapacity is a “global problem” that requires the “joint efforts of all countries” (142 ITD, 7/25/16).
Similarly, South Africa last week informed the WTO that it was starting its own investigation into whether safeguards on cold-rolled steel imports are warranted to protect its own steel industry (148 ITD, 8/2/16).
The embassies of China and Vietnam in the U.S. did not immediately respond to requests for comment.
To contact the reporter on this story: Brian Flood in Washington at firstname.lastname@example.org
To contact the editor responsible for this story: Jerome Ashton at email@example.com
Vietnam's WTO notification is available at http://src.bna.com/hlM.
Copyright © 2016 The Bureau of National Affairs, Inc. All Rights Reserved.
All Bloomberg BNA treatises are available on standing order, which ensures you will always receive the most current edition of the book or supplement of the title you have ordered from Bloomberg BNA’s book division. As soon as a new supplement or edition is published (usually annually) for a title you’ve previously purchased and requested to be placed on standing order, we’ll ship it to you to review for 30 days without any obligation. During this period, you can either (a) honor the invoice and receive a 5% discount (in addition to any other discounts you may qualify for) off the then-current price of the update, plus shipping and handling or (b) return the book(s), in which case, your invoice will be cancelled upon receipt of the book(s). Call us for a prepaid UPS label for your return. It’s as simple and easy as that. Most importantly, standing orders mean you will never have to worry about the timeliness of the information you’re relying on. And, you may discontinue standing orders at any time by contacting us at 1.800.960.1220 or by sending an email to firstname.lastname@example.org.
Put me on standing order at a 5% discount off list price of all future updates, in addition to any other discounts I may quality for. (Returnable within 30 days.)
Notify me when updates are available (No standing order will be created).
This Bloomberg BNA report is available on standing order, which ensures you will all receive the latest edition. This report is updated annually and we will send you the latest edition once it has been published. By signing up for standing order you will never have to worry about the timeliness of the information you need. And, you may discontinue standing orders at any time by contacting us at 1.800.372.1033, option 5, or by sending us an email to email@example.com.
Put me on standing order
Notify me when new releases are available (no standing order will be created)