The government stands by its ruling against the extension of safeguard measures for imported hot-rolled steel sheets with alloy. 

Adul Chotinisakorn, director-general of the Foreign Trade Department, said yesterday's final meeting of the Trade Interests and Remedies Committee, chaired by Chutima Bunyapraphasara, the acting commerce minister, resolved to stand by its Jan 7 ruling. 

The decision was made despite a petition by seven steel-related associations filed with the prime minister asking for an extension of safeguard measures on imported hot-rolled steel alloy sheets for an additional three years. The petition, filed on Feb 4, argued that without the safeguard measures the country's steel industry could collapse, impacting 440 companies and a total investment of 200 billion baht. This would ultimately affect 100,000 employees and pose a risk to financial institutions that have lent the industry 100 billion baht. 

The extension of safeguard measures for a further three years until Feb 26, 2022 would not violate World Trade Organization (WTO) rules, the steel groups said, as the WTO lets members exercise safeguard measures to protect local industries for up to 10 years. 

Mr Adul said before the final ruling the Commerce Ministry held a public hearing on Jan 29 with 91 stakeholders, including representatives from embassies, foreign manufacturers and related steel users' associations such as automobiles, shipbuilders, agricultural machines, importers and domestic manufacturers. 

The committee considers the extension of the safeguard measures unnecessary because an investigation showed the import volume and market share of such steel imports dropped, while the domestic sales volume and capacity utilisation increased in 2017 and 2018. The probe also found the losses of the affectedcompanies fell and employment rose. 

Extending such measures may put the country at risk from trade retaliation, Mr Adul said. Thailand exercised the safeguard measures on imported steel for the first time from Feb 27, 2013 to Feb 26, 2016 to Feb 26, 2019. 

A safeguard measure is a procedure under WTO rules that permits a government to act against an unusual rise in imports of similar goods from trading partners. The measure normally takes the form of additional duties or import quotas lasting several years. Under the safeguard measures, imported steel is subject to a tariff of 39.1%.