global trade

EU hikes tariffs on India, Indonesia stainless steel imports

Reuters
EU hikes tariffs on India, Indonesia stainless steel imports

STEEL. A worker rests on steel pipes at a steel market in Mumbai, India, February 10, 2010.

Punit Paranjpe/Reuters

This comes after the European Union's second investigation into transnational Chinese subsidies

BRUSSELS, Belgium – The European Union will increase tariffs on stainless steel products from India and Indonesia after determining they benefited from unfair subsidies, including some from China under its Belt and Road investment program.

The European Commission, which conducted the investigation, has set the antisubsidy duties on stainless steel cold-rolled flat products at rates of between 4.3% and 21.4%, the EU official journal said on Wednesday, March 16.

They will add to antidumping tariffs already in place.

Indonesia’s IRNC faces a new tariff of 21.4%, bringing the overall rate, including antidumping duties, to 30.7%.

The new rates for India’s Jindal Stainless Ltd and Jindal Stainless Hisar Ltd are 4.3%, taking the total tariff to 14.3%.

The commission said the subsidies took the form of preferential loans, duty exemptions, and cheap provision of raw materials, partly because of export restrictions for those materials.

Indonesia also benefited from subsidies to help build up its stainless steel industry from China, which in return benefited from taking up a larger share of Indonesia’s nickel ore exports.

This is the European Union’s second investigation into transnational Chinese subsidies. In 2020, the bloc imposed duties on glass fiber fabrics and products from Chinese companies or joint venture operations in Egypt.

The commission said that the new tariffs, to take effect from Thursday, March 17, aim to remedy damage caused to EU producers such as Acerinox and Outokumpu.

“Today we are taking action to counter unfair state-sponsored subsidies in India and Indonesia that directly hurt our workers and companies in this vital industrial sector,” EU trade chief Valdis Dombrovskis said. – Rappler.com