In a report this week, the Latin American Steel Association (Alacero) outlined struggles to reduce the charges of unfair trade between countries that are trading partners.
Rafael Rubio, director of Alacero, expressed concern over an increasingly troubled steel trade situation in the world, both in the region of the North America Free Trade Agreement (NAFTA) and between the countries of Latin America.
Rubio, who is a renowned specialist of international trade in the steel industry, outlined Alacero’s five most fundamental tasks:
1. The re-industrialization in the Latin America region.
2. The defense of fair trade in the region, "because in the low steel demand, it has become very troublesome."
3. Development value chain of steel to give profitability and sustainability. "If a company does not generate profits for their investors, their employees and the communities involved are hardly going to survive."
4. Facing unfair competition from China, the nation responsable for 50 percent of steel world production, which affects the industry of all countries by trying to place goods in their markets.
5. Attention to overcapacity in steel production has become more pronounced in recent years, in part because demand in some countries has been declining.
Rubio considered that Asian countries increased their production capacity without taking into account the conditions of their markets, resulting in overcapacity and hence more trade conflicts.