The Department of Trade and Industry has reduced safeguard duties on steel angle bars by a fifth with no indication of whether the trade protection scheme, set to expire in March 2012, will be extended for another three years.

The department order, dated December 13th 2011, came a month after the Tariff Commission recommended the extension to give local steel producers leeway to fulfill adjustment plans.

The delayed annual review is part of the Trade department's mandate as indicated in the Safeguard Measures Act (Republic Act 8800) to determine regularly the progress of local manufacturers in preparing themselves for the eventual liberalization of steel angle bars.

Trade Secretary Mr Gregory L Domingo said that "The review came rather late, but we will try to issue the next series earlier."

The current safeguard, which the trade agency granted in 2009, proved helpful to the local industry to recover its losses. Hence, the final year of the safeguard duty was cut back by 20% to PHP 4,106 per tonne from PHP 5,133 per tonne in 2010. This comes on top of an earlier reduction from the 2009 duty of PHP 9,000 per tonne. The commission report, meanwhile, is still pending review.

The ongoing safeguard proved effective in enabling local steel firms to resume operations leading to immediately employment of at least 60 employees for Dragon Asia Rolling Mills Inc, Cathay Metal Corporation, Maxima Steel Mills Corporation and 21st Century Steel Mills Inc.

Under the RA 8800, a safeguard measure may be imposed for as long as a decade. The World Trade Organization allows this barrier implemented temporarily by developing countries like the Philippines to assist infant industry development.

(Sourced from www.bworldonline.com)