Back to the complete issue
Wednesday, 29 May 2019

WTO to probe Egypt’s steel import duties

WTO to probe Egypt’s steel import duties: The World Trade Organization (WTO) will meet with Egyptian officials to discuss the recently imposed duties on steel imports during its November committee meetings, according to a press release (pdf). The Trade Ministry last month introduced 180-day import duties of 25% on finished steel rebar and 3-15% on iron pellets in a bid to protect local manufacturers. The WTO meetings come after Japan, Australia and South Korea complained that the country’s anti-dumping measures violate WTO rules. The global trade body will also hold talks with the European Union, Morocco, Canada and the Eurasian Economic Union, which have adopted similar protectionist measures.

Where will Egypt go from here? The temporary measure may be made permanent as soon as the ministry completes a study on whether these products are being dumped in Egypt. Sources told the local press that the Industrial Development Authority received a letter from the WTO about the measures, but provided no further details.

What do WTO rules say? Under WTO rules, a country is allowed to take emergency measures such as introducing temporary tariffs, subsidies and import quotas if its local industry is under serious threat by increasing imports. Key here is that the industry has to face “serious injury” before the government can take action — and a detailed investigation must take place in order to quantify the damage. Countries are also not permitted to target imports from specific countries.

Enterprise is a daily publication of Enterprise Ventures LLC, an Egyptian limited liability company (commercial register 83594), and a subsidiary of Inktank Communications. Summaries are intended for guidance only and are provided on an as-is basis; kindly refer to the source article in its original language prior to undertaking any action. Neither Enterprise Ventures nor its staff assume any responsibility or liability for the accuracy of the information contained in this publication, whether in the form of summaries or analysis. © 2022 Enterprise Ventures LLC.

Enterprise is available without charge thanks to the generous support of HSBC Egypt (tax ID: 204-901-715), the leading corporate and retail lender in Egypt; EFG Hermes (tax ID: 200-178-385), the leading financial services corporation in frontier emerging markets; SODIC (tax ID: 212-168-002), a leading Egyptian real estate developer; SomaBay (tax ID: 204-903-300), our Red Sea holiday partner; Infinity (tax ID: 474-939-359), the ultimate way to power cities, industries, and homes directly from nature right here in Egypt; CIRA (tax ID: 200-069-608), the leading providers of K-12 and higher level education in Egypt; Orascom Construction (tax ID: 229-988-806), the leading construction and engineering company building infrastructure in Egypt and abroad; Moharram & Partners (tax ID: 616-112-459), the leading public policy and government affairs partner; Palm Hills Developments (tax ID: 432-737-014), a leading developer of commercial and residential properties; Mashreq (tax ID: 204-898-862), the MENA region’s leading homegrown personal and digital bank; and Industrial Development Group (IDG) (tax ID:266-965-253), the leading builder of industrial parks in Egypt.