As Brazil’s steel industry seeks the help of the government to fight steel imports, the government decided to create a joint commission to support the struggling steel sector.
Brazil’s ministry of development, industry and foreign trade (MDIC), along with the nation’s chief of staff of the presidency and finance ministry, will help president Dilma Rousseff in decision-making situations regarding the local steel industry. The inter-ministerial group, called GTIS, is also expected to help strengthen the local industry, according to a filing published by the Brazilian government at its official gazette, Diario Oficial.
GTIS’ responsibilities include the analysis of proposals sent by the local steel industry, the creation of new proposals to strengthen the local steel sector, and the elaboration of a “diagnosis of the current scenario experienced by” the industry.
Recently, a minister said Brazil was expected to reach a final decision in the recently proposed hikes in duties for steel imports in the coming days.
Despite sounding as good news for most local producers, trade groups have opposed the move.
Recently, Abimaq, Brazil’s association for the machinery industry, opposed the move by saying in a letter to Monteiro, Brazil’s minister of development, industry and foreign trade, it would be a blow to the “already struggling competitiveness of the transforming industry, which uses the steel to manufacture its products.”
Media reports suggested the imports tariff for steel products could rise to up to 20 percent, from duties currently ranging from 8 to 14 percent.