The Indonesian Trade Safeguard Committee (KPPI) on January 8 reported to the World Trade Organization (WTO) on its investigation into iron or non-alloy steel imports as a method of self-defense. The investigation comes after PT. Bluescope Steel Indonesia and PT. Sunrise Steel filed petitions on December 2012, said the Vietnam Competition Authority under Ministry of Industry and Trade this Wednesday.

 

The items subject to the investigation are flat iron or non-alloy steel with a width of 600 millimeters or more, plated or coated with zinc-aluminum alloy with a carbon content of below 0.6% and a thickness of less than 1.2 millimeters.

The plaintiffs provided data showing a surge in imports of these products into Indonesia.

 

Pham Chi Cuong, chairman of the Vietnam Steel Association (VSA), said Vietnam last year exported a lot of these products to Indonesia, with a volume of over 130,000 tons. The exporters were mainly domestic firms and some foreign-invested enterprises.

 

In explanation for the recent anti-dumping cases against Vietnamese steel products filed by the regional countries such as Thailand and Indonesia, Cuong said Vietnam formerly had not exported steel.

 

Exports began to rise in 2010. Even though the volumes are still small, year-on-year growth is high, so Vietnam easily faces dumping charges in ASEAN countries.

 

In fact, Vietnam has had large trade deficits with ASEAN countries for many years.

 

According to the General Department of Customs, Vietnam exported over 1.95 million tons of iron and steel in 2012, bringing in more than US$1.64 billion, down 2.4% against 2011. Meanwhile, products made of iron and steel achieved an export turnover of US$1.37 billion, a growth of 21.7% year-on-year.