Thailand's Anti-Circumvention Probe into Chinese Steel Exports
In a move aimed at protecting its local steel industry, Thailand's Department of Foreign Trade has announced the commencement of an anti-circumvention investigation into Chinese special iron pipes and steel pipes. This inquiry will specifically address concerns that Chinese manufacturers may be circumventing existing anti-dumping measures by rerouting exports through third-party companies, particularly Tianjin Tianyingtai Steel Tube Limited Company.
The investigation was triggered by applications from domestic steel enterprises, who raised concerns about the ongoing practice of circumventing anti-dumping duties on steel products from China. According to the DFT, the focus is on whether products produced by China Youfa Group are being routed through intermediaries, such as Tianjin Tianyingtai, to bypass anti-dumping tariffs that are currently in place.
Background on Anti-Dumping Measures and Past Investigations
The issue of anti-dumping duties on Chinese steel products is not new. In 2017, Thailand imposed anti-dumping tariffs on special iron and steel pipes from China and South Korea. These tariffs were designed to address concerns that steel producers from these countries were selling their products at unfairly low prices, undercutting local manufacturers. The duties were levied based on cost, insurance, and freight (CIF) prices, ranging from 3.22% to 66.01% for Chinese imports, and from 3.49% to 53.88% for Korean imports.
These anti-dumping duties were intended to shield the domestic steel market from unfair trade practices, ensuring that local manufacturers could remain competitive against foreign imports that were deemed to be sold below market value.
Continuation of Anti-Dumping Duties
On July 19, 2023, Thailand's Anti-Dumping and Subsidy Review Committee made the decision to extend the anti-dumping duties on special iron and steel pipes for another five years. This extension was a response to continued concerns about unfair competition from foreign steel producers, particularly from China and South Korea. The decision reflected Thailand's commitment to protecting its local steel industry, ensuring that domestic manufacturers have a fair opportunity to compete in the market.
The renewed imposition of duties on these products from China and South Korea was seen as a critical move in maintaining the health of Thailand's steel sector. It was also an indication that Thailand is closely monitoring potential circumvention of its trade regulations.
Investigating Circumvention Practices
The current anti-circumvention investigation aims to address specific concerns raised by domestic companies. These companies have alleged that Chinese steel exporters may be using intermediary companies, such as Tianjin Tianyingtai Steel Tube, to bypass the anti-dumping duties imposed on their products. If these circumvention practices are confirmed, the Thai government may impose additional tariffs or take other measures to close the loopholes and ensure that the duties on Chinese steel products are effectively enforced.
The investigation is crucial for maintaining the integrity of Thailand's trade defense measures, ensuring that anti-dumping duties are not undermined by such practices. It also serves as a warning to other foreign exporters that Thailand is vigilant in its efforts to maintain a level playing field for its local industries.
Impact on Thailand's Steel Industry
The Thai steel industry, which includes both domestic manufacturers and importers, has long faced challenges from foreign imports, especially from countries like China and South Korea. The imposition of anti-dumping duties is seen as an essential tool for supporting local production and preserving jobs in the steel sector. By ensuring that foreign products are priced fairly, Thailand aims to foster a competitive environment where local steel producers can thrive.
The anti-circumvention investigation also underscores the importance of continued vigilance in the global steel market, where unfair trade practices can distort market dynamics and harm local industries. For Thailand, the investigation is an important step in protecting its steel industry from external pressures that could undermine its growth and competitiveness.
