SEATTLE (Scrap Monster): The American Iron and Steel Institute (AISI) submitted its comments on Indonesia Market Access, in response to a request from the Office of the United States Trade Representative (USTR).
The Institute expressed the view that Indonesia no longer meets key statutory criterion for the Generalized System of Preferences (GSP) beneficiary country status. The Indonesian Ministry of Energy and Mineral Resources (MEMR) had recently reinstated total prohibition on exports of nickel ore- a key component of stainless steel, as of January 1, 2020. This, not only has promoted the development of Chinese-owned export-oriented stainless steel production, but also has resulted in distortion of global nickel prices. The related steps taken by the Indonesian government to manipulate the global nickel market have proved detrimental to the U.S. domestic stainless steel producers, AISI noted.
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The direct actions by Indonesia to limit market access to its nickel ore resources clearly make it short of meeting a statutory criterion for GSP beneficiary country status.
According to AISI, Indonesia’s market-distorting policies have led to sudden surge in imports at unfair price into the U.S. market. This will ultimately result in shutdown of critical domestic steelmaking operations. This will make the country reliant on foreign sources for raw materials needed for stainless steel production.
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