Japan steel groups seek reforms to stop tariff evasion as China exports surge
TOKYO: Japanese steel lobby groups said on Monday (Aug 18) they have requested the early introduction of measures to prevent the evasion of anti-dumping tariffs aimed at protecting domestic industries from unfair imports.
The move comes as record steel exports from China, the world's largest producer, have sparked a protectionist backlash globally, with almost 40 countries starting anti-dumping investigations since January last year.
The Japan Iron and Steel Federation and four other industry groups said swift action is needed as countries such as China attempt to avoid anti-dumping tariffs by routing exports through third countries or conducting minimal processing to evade duties.
Japan has recently launched an anti-dumping investigation into hot-dip galvanised steel from China and South Korea, following a similar probe, kicked in July, into nickel-based stainless cold-rolled steel sheets and strips imported from China and Taiwan.
Even if anti-dumping measures are imposed, without steps to prevent circumvention, "their effectiveness will be significantly undermined," Takanari Yamashita, managing director of the steel federation, told reporters.
He stressed that the aim is to strengthen the anti-dumping system and ensure fair competition, not to pursue protectionism.
According to the federation, 18 of the Group of Twenty (G20) nations already have anti-circumvention systems in place, leaving only Japan and Indonesia without such measures.
Currently, if Japan seeks to address circumvention, it must launch an entirely new anti-dumping investigation.
For this reason, industry groups are urging the government to establish separate tax rules from existing anti-dumping tariffs under the tax reform planned for the next fiscal year starting April 1.
They are also calling for more trade investigators and improvements to the probe system. - Reuters
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