Thailand's Ongoing Review of Anti-Dumping Duties on CRC Imports from China, Taiwan, and Vietnam
In February 2025, Thailand’s Department of Foreign Trade initiated a sunset review of anti-dumping duties on cold-rolled coil imports from China, Taiwan, and Vietnam. These duties have been in effect for more than a decade and could see changes following the review process. The sunset review, launched on January 25, 2025, will determine whether these duties should remain in place or be terminated.
Background of Anti-Dumping Duties
The anti-dumping duties on Chinese CRC were set at 9.24% to 20.11%, following a petition filed by local producers in August 2012. The review of Taiwanese CRC led to duties of 8.8% to 17.47%, which were implemented in February 2014, while Vietnamese CRC faced duties of 14.35% during the same review period.
These anti-dumping duties were imposed after investigations found that these countries were selling cold-rolled coils in the Thai market at prices below the fair market value, a practice known as dumping, which was seen to harm local manufacturers.
Scope of the Sunset Review
The sunset review covers 315 product lines categorized under HS codes starting with 7209, 7211, and 7225, which are specific classifications related to cold-rolled coils. These categories include various grades and types of steel products widely used in industries such as automotive, construction, and manufacturing.
Potential Outcomes of the Review
The review will last for up to one year, during which the anti-dumping duties will continue to be collected. The DFT has indicated that if the duties are lifted after the review, the issues of dumping and market damage could reoccur or persist, undermining the interests of local steel producers. Therefore, the DFT must carefully consider whether these duties are still necessary to protect Thailand's domestic market or whether the situation has changed since the duties were first imposed.
The Importance of Anti-Dumping Duties
Anti-dumping duties are a key tool for protecting local industries from unfair trade practices, such as dumping, which can harm the financial health of domestic manufacturers. In Thailand’s case, these duties have been in place for over 10 years, and their continuation or removal could have significant effects on both the steel industry and broader trade relations.
The imposition of such duties provides local companies with a level playing field, allowing them to compete more fairly with foreign producers who might otherwise sell goods at artificially low prices. Conversely, the removal of these duties could lead to increased competition and potentially lower prices, benefiting industries that rely on imports for raw materials, but posing a risk to domestic producers.
Next Steps in the Review Process
Over the next several months, the DFT will likely gather data from various stakeholders, including domestic producers, importers, and trade bodies, to assess the impact of the existing duties and determine if they should be continued or adjusted. Based on the findings, the DFT will make a final decision on the future of the duties. The review is also a part of Thailand's ongoing efforts to ensure fair trade practices and support the competitiveness of its domestic industries.
As this process unfolds, stakeholders will closely monitor any developments, as the outcomes will affect the dynamics of the cold-rolled coil market in Thailand and possibly the broader Southeast Asian region. The result could also influence the trade relations between Thailand and the affected countries, China, Taiwan, and Vietnam, and shape future international trade policies in the region.
With the sunset review now underway, industry players and government bodies are preparing for potential shifts in the market based on the findings of this comprehensive examination.
