What specific subsidies did India and Indonesia receive for stainless steel?

Question

Accepted Answer

India and Indonesia Received Unfair Subsidies for Stainless Steel Products

The European Union has imposed new anti-subsidy duties on stainless steel products originating from India and Indonesia following an investigation by the European Commission. These measures were implemented because the Commission determined that these countries had benefited from unfair subsidies, which included preferential loans, duty exemptions, and the inexpensive provision of raw materials. Some of these subsidies were found to be linked to China's Belt and Road investment programme.
Preferential Financial and Material Support

The subsidies provided to India and Indonesia for their stainless steel industries encompassed a range of benefits designed to lower production costs and enhance competitiveness. These included access to preferential loans, which offered more favourable terms than market rates, and exemptions from various duties that would typically be applied to imported goods or raw materials. Furthermore, companies in these nations received access to raw materials at reduced prices, a benefit amplified by existing export restrictions on these materials, making domestic acquisition more economically advantageous.
Links to China's Belt and Road Initiative

A significant aspect of the investigation revealed that some of the subsidies were connected to China's Belt and Road Initiative. This transnational infrastructure development strategy appears to have facilitated the provision of state-sponsored support to the stainless steel sectors in both India and Indonesia. For instance, China provided subsidies to assist Indonesia in developing its stainless steel industry. In return, China gained advantages, such as securing a larger share of Indonesia's nickel ore exports, a key component in stainless steel production.
Imposition of New Tariffs

As a consequence of these findings, the European Commission has established new anti-subsidy duties on stainless steel cold-rolled flat products. These duties range from 4.3 per cent to 21.4 per cent and are intended to counteract the damage caused to EU producers. Specifically, Indonesia’s PT IRNC faces a new tariff of 21.4 per cent, which, when combined with existing anti-dumping duties, brings the total tariff to 30.7 per cent. Indian companies Jindal Stainless Ltd and Jindal Stainless Hisar Ltd will see their products subjected to a new 4.3 per cent rate, resulting in an overall tariff of 14.3 per cent.

Reading history

Hide →

This history is cleared when the page is closed.

What specific subsidies did India and Indonesia receive for stainless steel?

Loading

Was this article helpful?

Helpful

Not helpful

Report an issue

1

0

0

Share with friends