The UK has decided to no longer apply safeguard duties to imports of steel sheet and cold-rolled steel products, the Department for the Economy confirmed today (25th).
According to the ministry, the British decision was announced on Friday (23), four days after the US International Trade Commission (ITC) decided to withdraw trade protection tariffs (antidumping) that had been in place for more than 5 years. The duty is levied on cold-rolled steel products from Brazil.
With the removal of safeguards, Brazilian steel becomes more commercially competitive. The United Kingdom and the United States are the two main markets for Brazilian steel products. Of the approximately US$7.3 billion in Brazilian exports to the world in 2019, more than US$3.4 billion went to the United Kingdom and the United States.
According to the Economy Ministry, British officials were convinced by the argument that the volume of Brazilian exports fell within the duty-free parameters recognized by agreements signed within the World Trade Organization (WTO).
About a year ago, all steel sheet and cold-rolled steel products sold by Brazilian steelmakers to the UK were subject to a 25% surcharge above the maximum levels periodically reviewed by the UK authorities.
On the other hand, the US will no longer levy additional tariffs of up to 46% (35% anti-duty and 11% countervailing duty) on cold-rolled steel products purchased from Brazil. According to the Ministry of Economy, the decision of the United States applies only to Brazilian products, while the safeguard measures applied to other countries are maintained.
On the same day that it revised conditions for importing steel products from Brazil, the US International Trade Commission re-evaluated safeguard measures applied to products from China, India, Japan, South Korea and the United Kingdom.
In a memo, the US Commission explained that the move is part of the review process establishing international trade rules, which must occur every 5 years. Under these provisions, the United States must, within that period, withdraw any protective or reparative measures it cannot determine would lead to a continuation or recurrence of the conditions that prompted the same measures.
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