Canada scraps duty on RI steel

Canada scraps duty on RI steel

Canada has decided to scrap antidumping and countervailing duties
for certain hot-rolled carbon steel plate from Indonesia, as
there is not sufficient evidence that the products hurt Canada's
steel industry.

The move hands Indonesia's products an edge, and an
opportunity to be accepted again by Canadian buyers, with lower
prices making the products more competitive.

According to the Indonesia's ministry of trade, as stated in a
media statement issued on Friday, Canada's willingness to finally
agree to eliminate the duties was attributable to the
government's persistent lobbying efforts.

The duty exemption has been effective since June 27.

The antidumping duties, which were first introduced on June
27, 2000, carry a rate of 15 percent and 27.6 percent, while the
rate for the countervailing duty is set at Rp 757,728 (about
US$78) and Rp 1.16 million per metric ton.

Under the so-called "sunset review" antidumping policy, Canada
has been reviewing its policy towards Indonesia since October
last year.

During this period, Indonesia has appealed for the duty
exemption.

"After the introduction of the duties, Indonesia has halted
its steel exports to Canada," said the statement.

The ministry, however, appealed to the local producers not to
impose intolerably low prices on their products to Canada since
it could provoke the country to impose another duty to protect
their own local industry. -- JP