Thailand Slaps Anti-dumping Duty on Steel Imports

In what could be a blow to Indian steel makers, Thailand has imposed a provisional safeguard duty on import of rolled flat steel products of a certain specification, a major export from India.

The move comes close on the heels of the Indonesian government deciding to continue anti-dumping duty against two leading Indian steel firms - JSW Steel and Essar Steel.

The 33.11 per cent duty, which has been imposed by Thailand's Department of Foreign Trade (DFT) from February 27, would continue to be in effect till the first week of August. This is expected to adversely impact the fortunes of India's steel industry.

The development, coming after the Indonesian action has the steel ministry worried over the dimming overseas prospects of the domestic steel firms. The duty imposed by Thailand would be in effect against imports from other nations too.

According to a senior steel ministry official, the total exports of Indian hot rolled flat steel products to Thailand is to the tune of 1-1.5 lakh tonnes annually.

He said the DFT's decision has prompted on the recommendation of the country's Committee on Safeguards, which after a detailed investigation recommended imposition of the provisional safeguard duty against imports of flat steel produced laced with alloying elements such as boron, chromium etc.

The DFT has told the Indian embassy in Bangkok that the Government of Thailand is willing to talk to the Indian steel makers to allay their apprehensions on its action.

The DFT has told the Indian mission that the anti-dumping duty has been imposed in accordance with the provisions of the World Trade Organization.

"But when we asked the steel companies to air their views in this connection, so far none have come forward to do so, which is surprising," the official said.

Thailand's Committee on Safeguards in its report to submitted to the DFT said, "The Committee on Safeguard measures has reached a preliminary determination on January 31, 2013 that it is imperative to impose provisional safeguard measures against imports of the products concerned since there is clear evidence that increased imports have caused serious injury to domestic industry.