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ALACERO Highly Concerned over Proposal to Cut Steel Import Tariff

Posted on 21 September 2021

The Latin American Steel Industry (ALACERO) expressed deep concerns over the implications of possible elimination or reduction of tariffs on steel imports in Colombia on the region’s steel industry.

Such a measure would further boost the presence of steel products from countries like China and Turkey. It reminded that these countries have been the major contributors of distortion in world steel markets. They are the ones who are alleged for subsidizing domestic steel producers in their county.

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The proposed measure by Colombia will not only affect current jobs, but will also impact opportunities for the generation of new formal jobs. In addition, it will discourage the attraction of new foreign investment into the country. Incidentally, the Colombian steel industry has sufficient installed capacity to meet the demand from construction and infrastructure sector.

Alejandro Wagner, CEO, Alacero said that the drastic measures that are being proposed for temporary reasons, are quite unnecessary as well. The revival of steel industry is essential for economic reactivation of the country. The abrupt fall and subsequent rise in demand for steel coupled with commodity boom has sent the raw material prices to record levels, he added.

Source : Scrap Monster