Latin American governments and the World Trade Organization (WTO) must take action over Chinese steel exports flooding the region, several trade groups said Monday.
The region's producers must be protected by stricter customs control in order to prevent smuggling and evasion of antidumping duties as well as quality rules that force imports to match the region's standards.
In addition, there should be timely and efficient application of "all the instruments provided by the WTO," China and its state-owned companies must be compelled to act in a free-market manner and the WTO should not recognize China as a market economy, the trade associations said.
The signatories of the call to arms -- the Latin American Steel Association (Alacero), the Argentinian Steel Chamber, the Brazilian Steel Institute, Alacero Chile, the Colombian National Association of Entrepreneurs' steel producers committee, Mexico's Iron and Steel Industry Chamber (Canacero) and Peru's National Society of Industries (Metal-Mechanic Committee) -- argue that "the Chinese steel already represents 13% of the region's consumption, versus 6% five years ago."
Moreover, "Latin America is the second main destination of Chinese steel exports."
The group estimates that imports from China will rise to 9.7 million mt in 2015 from 8.3 million mt in 2014, a situation which is leading to "temporary shutdowns, plant closures and the loss of jobs" since "private companies can not compete against the Chinese government."
source: Platts
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