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Alacero makes an urgent call for the defense of the steel market in Guatemala-The 20th China(Guangzhou) Die-casting, Foundry & Industry Furnace Exhibition
11/20/2018 压铸展-铸造展- Die-casting expo-foundry expo |
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The Latin American Steel Industry is asking the Guatemalan authorities to meet the demand of the local sector in the face of the crisis caused by the disproportionate growth of unfair imports from China and other countries that puts the national industry at serious risk. As the Chamber of Industry of Guatemala has pointed out in a public annoucement on November 14, the Guatemalan industry has been exposed to China''s bad business practices, generating an inordinate growth of 395% in Chinese steel imports in flat products during the period from 2011 to 2017.
At the Alacero-59 Congress, held at the beginning of November in Colombia, the steel industry in Latin America shared the strong concern over the increase in imports throughout the region and the displacement of national production to the detriment of employment and industrial investment
Francisco Leal, general director of Alacero, pointed out that "The global and regional industry continues to be affected by the excess of installed capacity, where China is the main country that contributes to this problem. USA protecionism with the imposition of tariffs on the importation of steel, aggravates the diversion of that trade to our region, such as in the case of Turkey which last August doubled the tariff to completely stop the entry into the US market. Turkey, the eighth largest steel producer in the world, will seek to place its products in other markets. This puts a red flag for the Latin American steel industry; and countries that do not take action will be the most affected by the increase in unfair imports."
This situation has generated so much concern that today is stimulating many countries to take measures in order to defend their industries; among them:
The United States, based on Section 232, ordered a 25% fee on steel imports regardless of their origin. While Mexico renewed the 15% fee for steel imports from countries which does not have a trade agreement and has implemented anti-dumping measures against several Asian countries, mainly China.
As well as the former Soviet Union, Canada initiated a safeguard investigation of steel products, where it has already granted provisional measures. The European Union and Turkey placed provisional safeguard measures in a range between 25 and 32%.
Faced with this high risk scenario, Alacero reinforces the call it has been made to the governments of Latin America, so that in the case of Guatemala it works in coordination with local companies in preventive measures that prevent the country from being affected and helps to ensure that even conditions of competition and fair trade are maintained in the region''s market.
Guatemala has a high potential for industrial development since it has natural resources, a relevant market and skilled labor. What should allow them to become a more industrialized country.
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