Vietnamese Metallurgists Demand Strong Response to US Tariffs

The Vietnamese Steel Association (VSA) is urging the government to take strong action against the anti-dumping duties imposed by the United States on certain products, including considering WTO litigation if necessary.

The association has asked the Ministry of Industry and Trade (MIT) to take action to support steelmakers in a U.S.-initiated tax evasion investigation for galvanized steel sheets and cold rolled coils imported from Vietnam.

The new proposals are in response to the US Department of Commerce (DOC), which decides to impose anti-dumping measures and anti-subsidy rates on corrosion-resistant (CORE) and cold rolled steel from Vietnam.

The case began in September when US steelmakers, including ArcelorMittal USA, Nucor Corp, AK Steel Holdings Corp and Steel Corp, filed a formal complaint claiming that Chinese steelmakers were supplying products through Vietnam for tariff evasion.

In response, the VSA said its Department of Trade Protection objected to DOC's actions, which it said did not comply with international law. The ministry should ask DOC to comply with WTO rules as well as US law before making a formal decision to investigate tax evasion, the association said.

DOC expressed its view that Chinese products have been shipped to third world countries such as Vietnam to circumvent import duties. Although the steel material was processed in Vietnam, the department agreed with US manufacturers' claims that up to 90 percent of the product's value comes from China.

The VSA chairman said that Vietnamese steel mills have invested hundreds of millions of dollars in state-of-the-art processing lines to produce quality steel products, including galvanized sheet steel and cold rolled coils, that meet the stringent standards of the US and Japanese markets. According to him, this has created significant added value in the manufacturing process.