China has withdrawn its claim against EU
by Hans Diederichs
It is important because it implies a precedent for all the steel products that come from China since it confirms what the steel industry has been affirming for many years: China is not a market economy. We've known for a long time that China has been a problem due to all the subsidies its industry receives which have distorted the global steel market. This has been generating a loss of employment and industrial development in Latin America because the local industry cannot compete in unfair and uneven competition. The world has sought to defend itself from the global overcapacity caused by China and many countries have imposed measures to mitigate the effects of this unfair trade. The current anti-dumping cases show that there is a Latin American reaction towards China's Unfair Trade, although the mechanism has not appeared to be sufficient or effective. Currently there are 10 anti-dumping cases in steel in progress (66 in force) in Latin America, of which 65% are against China. The withdrawn of China from this demand against the European Union provides a new and solid argument to advance in the defence of markets increasingly affected by unfair competition.
Source: ALACERO Photo: Fotolia