Posted on 12 Nov 2018
ArcelorMittal and the Costa Rican Chamber of Construction (CCC) are in strong disagreement over whether or not the country should impose restrictions on imports of rebar of alloy and non-alloy steel used in construction. An anti-dumping investigation was begun following a complaint from ArcelorMittal Costa Rica in November 2017, Kallanish notes.
The company submitted an official request to the country’s watchdog for the application of an additional 14% anti-dumping duties to the current 1% on imported rebar during a public hearing held on 5 November.
“The current market situation is hitting the contribution of ArcelorMittal to Costa Rica. We maintain 400 jobs in the country and pay more than $1.1 million per year to the Costa Rican Social Security Fund,” ArcelorMittal says. According to the steelmaker, its annual cost for energy supplies from the Instituto Costarricense de Electricidad (ICE) amounts to $2.7 million annually.
Meanwhile, the CCC maintains that the construction sector will suffer if duties are applied. “The rebar price could rise in the local market if safeguarding is imposed, and subsequently impact the construction sector,“ the legal adviser of the Chamber Gina Torres says. Although not having carried out a specific investigation on current activity, CCC estimates that rebar represents 11.75% and 10.25% of the total value of the construction of [... commercial] buildings and residential housing respectively.
According to the Costa Rican trade defence department, the products are classified under HS codes 7214.20.00.00.10, 7214.20.00.00.90, 7214.99.20.00.10, 7228.30.00.00.10, 7228.50.00.00.10 and 7228.60.00.00.10.
The Costa Rican trade watchdog, Unidad de Defensa Comercial, will release its recommendations to the local Ministry of Economy, Industry and Commerce (MEIC) on 2 December.
