Egypt's Ministry of Commerce has been looking into the possibility of introducing anti-dumping duties on imports of Turkish steel products since late last year, but the tariffs are still in place.
Turkey has introduced energy subsidies since 1990 and they protect its steel industry. In Egypt today, antidumping measures are absent for all steel. If Egypt removes its energy subsidies, then it will have to protect its industry.
Ahmed Abu Hashima, CEO of an Egyptian steel company, said that "the dramatic cut in subsidies expected by the end of the year will require the industry to be protected in order to attract investors."
The government has no money, and energy subsidies are one of the most explosive problems facing former Egyptian army commander Abdel Fattah al-
Sisi, whose victory in the presidential election promises the military to return to power in Egypt after a brief Islamist rule.
Cuts in energy subsidies, which account for 13 percent of the state budget, are seen as an opportunity to restore public finances. But some experts say other protective measures are needed if energy prices rise.
The IMF estimates Egypt's energy subsidies are seven times what the country spends on health care. A clear move to cut subsidies could restore confidence among investors who are eyeing successive governments.
Egyptian steel firms need anti-dumping duties on cuts in energy subsidies
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Azovpromstal® 31 May 2014 г. 15:58 |
