U.S. asked to cut steel duty

U.S. asked to cut steel duty

The Jakarta Post, Jakarta

Indonesia is asking the U.S. government to reduce the current
10.21 percent subsidy fine it imposes on state-owned PT Krakatau
Steel's exports of hot-rolled carbon steel products, a senior
official from the ministry of industry and trade said.

Director-general for International Cooperation Hatanto
Reksodipoetro said in Singapore on Saturday that the local steel
industry has been deregulated, and as such, the government
doesn't provide subsidies to any local steel manufacturer,
including the state-owned Krakatau group.

He was quoted by Dow Jones newswires as saying that the
government just shoulders the state-owned company's operating
costs. Therefore, he said, the U.S. shouldn't impose the duty
against Krakatau's products.

Krakatau Steel is Indonesia's only major exporter of hot-
rolled carbon steel. Indonesia holds 3.98 percent of the U.S.
import market for the product.

The U.S. Commerce Department had earlier imposed an
antidumping duty of 47.86 percent and a subsidy fine of 10.21
percent on Krakatau's steel products on grounds that the
Indonesian government is extending subsidies to the country's
biggest steel producer.

Hatanto said that the U.S. government has since eliminated the
47.86 percent antidumping duty, but he said Indonesia is still
hoping that the U.S. will further cut or scrap the subsidy fine.

He said Indonesia is still negotiating this matter with U.S.
trade officials.

The final affirmation is pending a decision by the U.S.
International Trade Commission, which will convene on Nov. 8, and
if affirmed, the duties will become effective Nov. 15.