The Latin American Steel Association ALACERO has expressed great concern about the implications that an eventual reduction or elimination of tariffs on imports of steel would have for the Colombian steel industry. Alacero CEO Mr Alejandro Wagner said “We believe that drastic measures are being proposed for temporary reasons, affecting structural issues, such as local employment and investment. It is not a local situation, but more regional and even global. A sum of factors was given. The abrupt fall and subsequent rise in the V shape of demand and a commodity boom, brought the prices of raw materials to record levels.”Alacero mentions that this measure would strengthen the presence of product from China and Turkey, countries that have historically distorted world steel markets and are recognized for subsidizing their producers, as well as for having complaints of cases of dumping or unfair practices, such as the case of Turkey, currently with 29 complaints of this type. Additionally, these nations do not respond to the carbon targets established by the United Nations 2030 Agenda.This measure is seen as unnecessary, since it has been demonstrated that the steel industry in Colombia has an installed capacity to produce up to 2.6 million tons of steel, sufficient quantity to meet the demand of the construction and infrastructure sector in the country. Even, to date, there are already signs of inventory accumulation.The possibility of a measure of this type, means affecting current jobs and eventual opportunities for the generation of new formal jobs in Colombia. In addition, it would be a clear signal that would discourage the attraction of new foreign investment to the country. It is very important to promote the local steel industry and the more than 45,000 jobs that the sector generates and that allow substituting imports with Colombian labor.
The Latin American Steel Association ALACERO has expressed great concern about the implications that an eventual reduction or elimination of tariffs on imports of steel would have for the Colombian steel industry. Alacero CEO Mr Alejandro Wagner said “We believe that drastic measures are being proposed for temporary reasons, affecting structural issues, such as local employment and investment. It is not a local situation, but more regional and even global. A sum of factors was given. The abrupt fall and subsequent rise in the V shape of demand and a commodity boom, brought the prices of raw materials to record levels.”Alacero mentions that this measure would strengthen the presence of product from China and Turkey, countries that have historically distorted world steel markets and are recognized for subsidizing their producers, as well as for having complaints of cases of dumping or unfair practices, such as the case of Turkey, currently with 29 complaints of this type. Additionally, these nations do not respond to the carbon targets established by the United Nations 2030 Agenda.This measure is seen as unnecessary, since it has been demonstrated that the steel industry in Colombia has an installed capacity to produce up to 2.6 million tons of steel, sufficient quantity to meet the demand of the construction and infrastructure sector in the country. Even, to date, there are already signs of inventory accumulation.The possibility of a measure of this type, means affecting current jobs and eventual opportunities for the generation of new formal jobs in Colombia. In addition, it would be a clear signal that would discourage the attraction of new foreign investment to the country. It is very important to promote the local steel industry and the more than 45,000 jobs that the sector generates and that allow substituting imports with Colombian labor.
