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.