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