After more than 30 years, the United States has removed a trade barrier to Brazilian steel production. The country has abolished antidumping duty on welded steel pipes from Brazil.
These products will no longer be subject to a 103.4% surcharge to enter the North American market. The antidumping duty, in effect since 1992, was repealed by the United States International Trade Commission.
According to the Minister of Development, Industry and Trade and Vice President of the Republic, Geraldo Alckmin, the decision will help boost Brazilian exports in 2024. “It is an important achievement that will further expand steel exports of steel pipes to the United States,” Alckmin said as he announced the record trade surplus of $98.8 billion last year.
Antidumping law, approved by the World Trade Organization, is applied when a country claims that a competitor is producing a good below cost, resulting in unfair competition with the national product. To lift the surcharge, the sanctioned country must demonstrate that companies are not exporting goods below cost.
Foreign Trade Minister Tatiana Prazeres emphasized that the Brazil was the only country that suffered this type of punishment and where the surcharge was abolished after review by the US government. “This shows how committed the Brazilian government is to defending Brazilian companies abroad and was able to prove that the antidumping law was not applicable,” he explained.
With the exception of Brazil, the United States continues to impose surcharges on welded nonalloy steel pipe (those manufactured in nonalloy form) from the following countries: India, Mexico, South Korea, Taiwan, and Thailand.
In 2023, Brazil exported around $22 million worth of welded steel pipes. Of that, the United States accounted for just $457,000, about 2% of the value. Looking at the steel sector as a whole, the country sold around $1.8 billion in cast iron, iron or steel products last year, of which $332 million went to the North American market, 18% of the exports of Brazilian companies in this segment.
According to the MDIC, the difference between market shares (between 2% and 18%) indicates that the measure on Brazilian foreign trade could potentially be lifted.