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New US Steel Tariffs and Their Impact on Arab Countries

That the trend towards open market policy and the concept of global markets can not mean at all that the right is given to both importers and exporters to ignore the fundamental principle of the freedom of international trade is not to resort to a policy of imposing excessive protectionist fees for the protection of domestic industry or dumping policy as a motive to increase The volume of exports or unilateral control in the world markets. On the contrary, the liberalization of international trade has started from the concept of expanding the base of global markets and anti-dumping as a prerequisite for creating an atmosphere of mutual trust to achieve fair competition, And the development of the concept of freedom of trade in world markets.

In light of the challenges faced by the global and Arab steel industry, the United States of America has decided to impose a customs duty of 25% on steel imports and 10% on aluminum imports to all countries except Canada and Mexico. Which is contrary to the rules and standards of international trade, even if the countries of the world follow the example of the United States and placed their interests above all international laws and imposed protective measures for the A, this will lead to serious consequences for the global trading system.

And may make the countries affected by this decision to impose tariffs and tariffs on US products, but to raise the proportion of taxes on factories owned by American institutions within those countries.

The Arab steel industry was not far from these events as this decision had a direct and indirect effect on the steel industry in the Arab countries. Some Arab countries have been affected by this decision, although they are in a lagging proportion of their steel exports to the United States, which does not exceed 5% .

Especially Egypt, which exports to the United States more than 170 thousand tons of steel annually, which estimated the Egyptian Ministry of Industry and Trade losses incurred by Egyptian companies because of the US decision about 180 million US dollars and if this figure is important to Egypt, it is only a fraction of the total value of US steel imports of US $ 33 billion in 2017.

But the indirect effect is the resort of countries with major economies, especially China, the European Union, Turkey and the countries of the independent group to discharge surplus production to alternative countries and the Arab countries markets are the closest and easiest to attract those surpluses, which may lead to a decline in prices and increased competition between the domestic product and imported product which saw In recent years has been somewhat stable through major projects implemented in Arab countries.

“The IMF urges the United States and its trading partners to work together in a constructive way to reduce trade barriers and resolve trade disputes without resorting to such emergency measures,” the IMF said in a brief statement.
Therefore, the Arab Iron and Steel Union considers the importance of continuous follow-up to the global changes in this industry. There must be rapid intervention and preventive measures when this industry needs it. Countries can intervene to protect their products in order to promote them in a specific period of time. Arab countries and think beyond the 2020, which will see the completion of most major projects in the Arab countries such as Saudi Arabia, the UAE, Egypt and Qatar and also it is necessary at the present time to build strategic alliances at the level of Arab countries and the expansion of investments in products Of added and not rely on ordinary steel products and this is the next challenge for Arab iron and steel.

 

Arab Steel

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