The Eurasian Economic Commission has decided to extend its anti-dumping duties on galvanized rolled steel products imported from China and Ukraine until September 1, 2025. These duties, which were initially imposed in December 2019, are designed to protect the local steel industry within the Eurasian Economic Union from unfair trade practices. The extension comes as the current measures are set to expire on January 5, 2025, and are aimed at maintaining a level playing field for manufacturers in the region. By extending these duties, the EEC hopes to safeguard domestic producers from cheaper imports that could harm local markets.
The galvanized rolled products under scrutiny are classified under specific Harmonized System codes, which include items like cold-rolled steel sheets and coils. These products are essential in industries such as construction, automotive manufacturing, and electronics due to their corrosion-resistant properties. As part of the EEC's ongoing commitment to ensuring fair trade, the anti-dumping duties are calculated as a percentage of the customs value of the imported products. For Chinese manufacturers, the duty rates range from 12.69% to 17%, depending on the company, while for Ukrainian producers, the duty rate is set at 23.9%. These rates are aimed at offsetting the pricing advantages that arise when products are sold at artificially low prices in international markets, a practice known as dumping.
In addition to the extended duties, the EEC has also approved specific price obligations for five Chinese steel companies. These price commitments are part of the broader effort to curb dumping by ensuring that these companies do not engage in practices that would unfairly undermine the local market in the EEU. By agreeing to price obligations, the companies are essentially promising to sell their products at prices that reflect the actual cost of production, rather than at below-market prices designed to undercut competitors. This move is intended to reduce the potential for market distortion and prevent the unfair competition that could negatively affect EEU producers.
The decision to extend anti-dumping duties highlights the growing concerns over trade imbalances and the impact of cheap imports on domestic industries. The steel industry in the EEU, like in many parts of the world, has faced challenges from foreign producers offering goods at significantly lower prices. These lower prices often result from subsidies or other state-supported mechanisms in the exporting countries, such as China and Ukraine, that allow their manufacturers to sell at a loss or at below the cost of production. For countries within the EEU, this poses a threat to local jobs and businesses, especially when these imports flood the market, driving down prices for domestically produced steel and making it difficult for local producers to compete.
The extension of these duties is also significant in the context of global trade relations. Both China and Ukraine are major exporters of galvanized steel products, and the EEC's decision could further strain trade relations between the EEU and these two countries. China, in particular, is the world’s largest steel producer and exporter, and its steel industry has long been at the center of anti-dumping investigations and tariffs worldwide. By maintaining high duties on Chinese products, the EEC is signaling its commitment to protecting its market from what it considers unfair trade practices. Ukraine, too, has been involved in similar disputes with other regions, and the extended duties reflect ongoing tensions over steel trade between the EEU and Eastern European countries.
The original anti-dumping duties, which were established in December 2019, were based on an investigation into the pricing practices of Chinese and Ukrainian producers. The investigation found that both countries were selling galvanized steel products at prices lower than the cost of production, which led to a surge in imports that adversely affected local steel manufacturers. The measures were therefore introduced as a way to shield domestic industries from such competitive pressures. Since then, the duties have been reviewed periodically to assess their effectiveness and to determine whether they should be extended or modified.
The extension of these anti-dumping duties is part of the EEC's broader strategy to ensure that the regional market remains fair and competitive for domestic producers. While the duties may benefit local steel manufacturers by reducing the influx of cheaper imports, they also carry the risk of increasing prices for consumers in the EEU. As with any trade protection measure, the balance between protecting domestic industries and ensuring affordable access to goods is a delicate one. However, the EEC has made it clear that it views the preservation of the region’s industrial base as a priority, especially in sectors critical to economic development and job creation.
This move by the EEC is not only a response to the specific case of galvanized steel but also reflects broader concerns about the future of trade protectionism in an increasingly globalized economy. As countries seek to protect their domestic industries from the effects of dumping and unfair competition, measures like anti-dumping duties are likely to remain a key tool in trade policy. For the steel industry in the EEU, the extension of these duties represents a temporary but important safeguard against unfair pricing practices that could undermine the local market. As global trade dynamics continue to evolve, it will be interesting to see how such policies are adapted to address new challenges and opportunities in the world of international trade.
