Alarmed by Steel Imports
| A newly-passed act will bring steel
imports under control by slapping different duties. |
It is difficult to decide between import of foreign
products to boost competition at home market, and banning imports at the threat of market
monopoly. With abundant resources and iron ore mines along with cheap labor, Iran does
have the potentials to produce 16 million tons of steel per annum. The International Iron
and Steel Institute says Iran has the upper hand in steel production but imports subject
to low tariffs in the past two years have stolen competitiveness from local industries
leaving some plants on the verge of virtual shutdown. Iranian Minister of Industries and
Mines Esshaq Jahangiri explains more:
Source of the Problem: Imports on the cheap from Kazakhstan, Ukraine and Russia have
disrupted the steel industry all over the world. Many countries have now introduced
limitations to steel imports from the trio.
One Way to
Survive: A special commission made
up of Ministers of Commerce, Finance, Industries and Mines, and the Central Bank Governor
recently brought up the issue of slapping differential duties on steel imports from
Kazakhstan, Ukraine and Russia and approved it. The reason why Iran has stolen the
exporters’ show is that the trio has lost their foothold in other markets. Other
countries have made steel imports from these three countries subject to certain
limitations. As a result, the new act will bring imports under control ridding local
industries of an enormous problem. |
