Posted on 25 Nov 2015
In a statement yesterday, Misif deemed Megasteel’s proposal “unsustainable” as it did not fulfil the requirements set out under the World Trade Organisation (WTO) law and the relevant domestic legislations.
Megasteel has requested the Government to impose safeguard duties on the imports of HRC at the rate of 40%, on top of the existing 15% import duties on HRC, with the rate gradually reduced over a four-year period.
“Megasteel’s request for safeguard duties is unsustainable as it does not fulfil the requirements set out under WTO law and the relevant domestic legislations,” said Misif.
It added that Megasteel, in its request, had failed to exclude, among other things, government-sanctioned duty free HRC imports, HRC imported for the re-export market and HRC which were imported by Megasteel itself.
Misif emphasised that in accordance with the WTO rules, a public hearing was held on Nov 4, 2015 by the International Trade and Industry Ministry.
It said that at the hearing, interested parties and stakeholders, including Misif, had unanimously voiced their unequivocal and firm opposition to any proposed safeguard measures requested by Megasteel.
Misif said it was of the firm view that Megasteel’s petition was “without merits” and that “any imposition of safeguard measures to bail out an insolvent company runs contrary to Malaysia’s public interest.”
“Given the far reaching implications of this matter, we also wish to put on record that Misif is prepared and will not hesitate to resort to all available legal avenues to protect the Malaysian iron and steel industry’s interest.
“Bearing in mind Megasteel’s inability to be competitive even when the Government has coddled it with numerous protection measures since its inception, what else does Megasteel want?!”
