Steel: Dumping Denounced

Arguing that dumping practices exist by China and are not competing on an equal basis, businessmen from the sector in Guatemala request the intervention of the authorities.

Tuesday, November 20, 2018

Through a statement from the Chamber of Industry of Guatemala (CIG), explained that in recent years, China, through its improper business practices including dumping and subsidized prices, has affected local production.

You may be interested in "Central America: Steel Sheet Imports Up 23%"

The document explains that from 2011 to 2017, with actions of dumping practices mentioned above, there was a growth in steel imports from China of 395%, a situation that puts at risk an important industry for our country. Reduction in the use of installed capacity that has impacted on working hours, is just one of the effects that is already being noticed and could even lead to the loss of jobs of hundreds of Guatemalans.

Faced with this situation, the CIG requested the Government to do the following:

- Develop urgent and rapid implementation actions to ensure the contention of the severe problems that this dumping is causing and may continue causing.
- Expedite the use of the WTO mechanisms to combat dumping, especially by China, ensuring conditions that guarantee a "similar role.”
- Having effective customs operations against under-invoicing, smuggling, customs cheating, misclassification of tariffs and triangulation of products.

Regarding this situation, the executive director of the CIG, Javier Zepeda, said to that "... there are mechanisms foreseen in the OMC to combat these practices and that can play a similar role when making international transactions."

On the other hand, Enrique Lacs, ex vice-minister of Economy, indicated that "... there are the mechanisms of commercial defense that can be the guarantee, in which a tariff is imposed if it is verified the accelerated growth of the imports."

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