Detailed Overview:
Introduction: Pakistan’s Continued Anti-Dumping Measure
On March 15, 2025, the National Tariff Commission (NTC) of Pakistan announced a final affirmative determination in the first anti-dumping (AD) review regarding cold rolled coils and sheets imported from Canada and Russia. The NTC decided to extend the imposition of the AD duty at a rate of 13.94% for another five years. This duty was initially implemented to address concerns that these imports were being sold at unfairly low prices, potentially harming Pakistan’s domestic steel industry.
The anti-dumping measure, which was initially applied on September 20, 2024, will now continue in force for a full five-year term. The ruling primarily concerns cold rolled flat-rolled products of iron or non-alloy steel, a key material in manufacturing, construction, and various other industries.
What Is Anti-Dumping (AD) Duty?
Anti-dumping duties are trade protection measures imposed by governments to prevent foreign companies from selling products in another market at unfairly low prices. These duties are often triggered when an investigation reveals that goods are being dumped into a market at below-market prices, which can harm domestic producers. The goal of anti-dumping measures is to restore fair competition and protect local industries from being undercut by cheaper foreign imports.
In this case, Pakistan has found that cold rolled coils and sheets from Canada and Russia were being sold at prices that could potentially disrupt its domestic steel market. As a result, the country has decided to keep the duty in place to prevent further harm to its steel sector.
The Affected Products: Cold Rolled Coils and Sheets
The specific products impacted by this decision are cold rolled flat-rolled products made from iron or non-alloy steel. These products have a thickness ranging from 0.15 mm to 3.00 mm and are not clad, plated, or coated. The cold rolled coils and sheets covered by the AD duty are used in a variety of industrial applications, but notably, they exclude products used in automotive outer skins for four-wheeled vehicles. This distinction ensures that materials used in the automotive sector are not subject to the duty, likely to prevent any negative impact on the automotive industry.
The products in question are classified under the following HS codes (Harmonized System codes):
• 7209.1510
• 7209.1590
• 7209.1610
• 7209.1690
• 7209.1710
• 7209.1790
• 7209.1810
• 7209.1891
• 7209.1899
• 7209.2510
• 7209.2590
• 7209.2610
• 7209.2690
• 7209.2710
• 7209.2790
• 7209.2810
• 7209.2890
These categories cover a wide range of cold-rolled steel products, used across different sectors, including construction, machinery, and general manufacturing.
The Impact of the Anti-Dumping Duty on Trade
The decision to maintain the 13.94% anti-dumping duty on cold rolled coils and sheets from Canada and Russia could have several ramifications for both the domestic and international steel markets:
For Pakistan:
• Protection of Local Industry: By imposing this duty, Pakistan aims to protect its domestic steel producers from being undercut by unfairly priced imports. This ensures that local manufacturers are able to compete on a more level playing field.
• Increased Costs for Importers: Importers of these steel products from Canada and Russia will face higher costs, as the AD duty will be added to the price of the products. This could lead to higher prices for consumers in sectors that rely on cold-rolled steel, such as construction and manufacturing.
• Trade Relations: This ruling may strain trade relations between Pakistan and the countries affected, particularly Canada and Russia. The imposition of anti-dumping duties is often seen as a protective measure and can sometimes lead to retaliatory actions from the exporting countries.
For Canada and Russia:
• Market Restrictions: The continuation of the anti-dumping duty limits the ability of Canadian and Russian producers to export cold-rolled coils and sheets to Pakistan at competitive prices. This could force them to find alternative markets or adjust their pricing strategies to mitigate the effects of the duty.
• Potential Diplomatic Tensions: Both Canada and Russia may see this as an unfair trade practice, potentially leading to diplomatic negotiations or even retaliatory measures against Pakistan’s exports.
• Production Adjustments: To avoid anti-dumping measures in other markets, steel producers in Canada and Russia may look at adjusting their pricing and production strategies, ensuring their products are competitively priced in markets where such duties are not imposed.
Duration of the Measure
The duty will be valid for five years, starting from September 20, 2024, and extending through September 2029. This long duration provides a degree of stability and predictability for Pakistan’s steel industry, ensuring that domestic producers will have continued protection from the potential harm caused by dumped imports.
It also provides an opportunity for both the Pakistani government and the affected countries to engage in further negotiations, either to modify the terms of the duty or to resolve the dispute through international trade bodies like the World Trade Organization (WTO).
Next Steps: Potential Reviews and Adjustments
As part of the anti-dumping measures, the duty rate can be reviewed periodically. The NTC may carry out sunset reviews to assess whether the anti-dumping measures should continue after the five-year period. Additionally, the affected exporting countries—Canada and Russia—could file appeals or request a review of the duty if they believe it is unjustified.
If the market conditions change significantly during this period, the NTC may also decide to revise the duty rate, either increasing or decreasing it based on updated evidence of market dynamics.
Key Takeaways:
• Pakistan’s National Tariff Commission confirmed the continuation of the 13.94% anti-dumping duty on cold rolled coils and sheets from Canada and Russia.
• The duty applies to cold rolled flat-rolled products of iron or non-alloy steel, with a thickness range of 0.15 mm to 3.00 mm.
• Automotive outer skins are excluded from the duty, ensuring that the automotive sector is not negatively impacted.
• The ruling will remain in effect for five years, beginning September 20, 2024, and ending in 2029.
• The HS codes affected by the measure cover a wide range of cold-rolled steel products used in industries like construction, manufacturing, and machinery.
• Pakistan’s domestic steel industry is protected from unfairly priced imports, although the duty may lead to higher costs for local consumers in sectors reliant on cold-rolled steel.
• Canada and Russia may seek alternative markets or adjust their pricing strategies to mitigate the impact of the duty on their exports to Pakistan.
• The duty could lead to diplomatic tensions between Pakistan and the affected countries, particularly if they view the measure as unfair.
• Periodic reviews of the duty will be conducted, and the affected countries may appeal or request modifications to the duty based on changing market conditions.
