Jakarta (Indonesia Window) – The European Union will raise tariffs on stainless steel products from India and Indonesia after determining that both countries are benefiting from unfair subsidies, including some from China under the Belt and Road investment program.
The European Commission, which conducts the investigation, has set anti-subsidy duties on cold-rolled flat stainless steel products at rates between 4.3 percent and 21.4 percent, the European Union's official journal said on Wednesday (March 16).
The EU will add the existing anti-dumping tariffs.
An Indonesian company, Indonesia Ruipu Nickel and Chrome Alloy (IRNC), looks a new tariff of 21.4 percent, bringing the overall tariff, including anti-dumping duties, to 30.7 percent.
Meanwhile, the new rates for Jindal Stainless Ltd. India and Jindal Stainless Hisar Ltd. is 4.3 percent, bringing the total tariff to 14.3 percent.
The commission said the subsidies took the form of preferential loans, duty exemptions and the provision of low-priced raw materials, partly due to export restrictions for these materials.
Indonesia also benefits from subsidies to help build its stainless steel industry from China, which in return benefits from taking a larger share of Indonesia's nickel ore exports.
This is the EU's second investigation into China's trans-national subsidies. In 2020, the bloc imposed duties on fabrics and fiberglass products from Chinese companies or joint venture operations in Egypt.
The commission said the new tariffs, which took effect on Thursday (March 17), were aimed at repairing the damage caused by EU manufacturers such as Acerinox and Outokumpu.
"Today we are taking action to fight unfair state-sponsored subsidies in India and Indonesia that directly harm our workers and companies in this vital industrial sector," EU trade chief Valdis Dombrovskis said.
Reporting by Indonesia Window
