Alacero, Latin America’s steel association, sent on Monday an open letter urging the region’s governments to aid the local steel industry.
Alacero said Latin America’s steel industry is currently at a “crossroad,” with China’s overcapacity weighing on one hand, while the trade war, including the US 232 Section, weighs on the other.
Alacero urged governments to “jointly” work on “preventive measures” to avoid further negative effects for the local steel industry, while providing the basis for a “fair trade” in the region.
Commenting the issues affecting both the global and Latin America’s steel industries, Alacero said trade barriers, including the US 232 Section, as well as certain European and Turkish safeguarding duties on imported steel, will produce a “trade deviation,” which will “further affect the Latin American (steel) market.”
In the letter, Alacero urged, based on the Global Forum on Steel Excess Capacity Ministerial, the Hangzhou 2016 to be implemented, as well as the six strategies outlined by the Global Forum.
It also requested G-20 countries to address their commitment to solve the steel industry crisis in the G-20 meeting being held this week in Buenos Aires, Argentina.
Adding to its requests, Alacero urged, among other things, the joint defense of the region’s steel industry interests in international forums.
In the short term, it asked governments to implement a real-time monitoring of steel imports and exports to avoid trade deviations.
Other requests included World Trade Organization’s trade defense measures, agile response mechanisms to address the effects of the world’s steel glut, and a system to follow the economic situation of the local steel industry and its economic blocs.