Usiminas Chief Calls for Stronger TradeProtection Measures
Marcelo Chara, the president of Usiminas, one of Brazil'slargest steel producers, has issued a stark warning about the challenges facingthe country's steel industry. In a recent statement, Chara emphasized that"Brazil cannot fall behind and needs to defend local industry"against the growing threat of subsidized imports.
The executive specifically identified the lack of effectiveprotective measures as the primary threat to the sustainability of Brazil'ssteel sector. "The lack of application of effective measures to createfair competition conditions, given the strong presence of subsidized imports,is the main threat to the sustainability of the Brazilian steel sector and itsvalue chain," Chara stated.
Growing Concerns About Unfair Competition
Chara's comments reflect mounting concerns within Brazil'ssteel industry about the impact of foreign steel imports, particularly thosethat benefit from government subsidies in their countries of origin. Thesesubsidized imports can enter the Brazilian market at artificially low prices,creating what industry leaders view as an uneven playing field for domesticproducers.
The Usiminas president's statement suggests that withoutappropriate government intervention to level this playing field, Brazil's steelindustry, a cornerstone of the country's industrial base, could face seriouslong-term challenges to its viability and competitiveness.
Strategic Importance of Steel Industry
Steel production has long been considered a strategicindustry in Brazil, with significant implications for national development,economic independence, and industrial capability. The sector directly employsthousands of workers and supports hundreds of thousands more jobs throughoutits supply chain and in steel-consuming industries.
Usiminas itself is a major player in this ecosystem.Founded in 1956 as part of Brazil's industrialization drive, the company hasgrown into one of Latin America's largest integrated steel producers.Headquartered in Belo Horizonte with its main industrial operations inIpatinga, Minas Gerais, Usiminas specializes in flat steel products that supplycritical sectors including automotive, home appliances, civil construction,machinery, and energy.
Global Context of Steel Trade Tensions
Chara's comments come against a backdrop of increasingglobal tensions in steel trade. Many countries have implemented protectivemeasures for their domestic steel industries in recent years, includingtariffs, quotas, and anti-dumping duties.
The United States has maintained Section 232 tariffs onsteel imports since 2018, while the European Union has implemented safeguardmeasures to protect its market from diverted steel flows. China, the world'slargest steel producer, has been accused of providing substantial governmentsubsidies to its steel industry, leading to global overcapacity and pricedistortions.
In this context, Chara appears to be advocating for Brazilto adopt similar protective approaches to those implemented by other majoreconomies, arguing that failure to do so would place Brazilian producers at acompetitive disadvantage.
Key Takeaways:
• Marcelo Chara, president of Brazilian steel giantUsiminas, has warned that Brazil's steel industry faces serious threats fromsubsidized imports.
• Chara emphasized that "the lack of application ofeffective measures to create fair competition conditions, given the strongpresence of subsidized imports, is the main threat to the sustainability of theBrazilian steel sector and its value chain."
• His statement highlights growing concerns within Brazil'ssteel industry about unfair competition from foreign producers who benefit fromgovernment subsidies in their home countries.
• The Usiminas president argues that Brazil needs toimplement protective measures for its domestic steel industry, similar to thoseadopted by other major economies like the United States and European Union.
• Steel production is considered a strategic industry inBrazil, with significant implications for national development, economicindependence, and industrial capability.
• Usiminas is one of Latin America's largest integratedsteel producers, specializing in flat steel products that supply criticalsectors including automotive, home appliances, and construction.
• Chara's comments come against a backdrop of increasingglobal tensions in steel trade, with many countries implementing protectivemeasures for their domestic steel industries.
