Malaysia removes anti-dumping duties on Vietnamese steel
AMS
Malaysia removes anti-dumping tariffs on Vietnamese steel in a move that could strengthen automotive supply chains within the ASEAN bloc.
Malaysia has decided to lift anti-dumping duties and investigations
on imported steel from Vietnam, having originally imposed tariffs ranging from
7% to 20% over the last five years.
The Malaysian Ministry of Investment, Trade and Industry
(MITI) made the decision to get rid of the anti-dumping tariff on cold-rolled
steel coils or non-alloy steel products originating or imported from Vietnam
and South Korea, while keeping tariffs on steel imports from China and Japan,
but these exclude products used in automotives.
The Trade Defence Department said the move is a positive
result for Vietnamese steel companies to maintain exports to Malaysia.
The move strengthens the supply chain links in the ASEAN
region, with both Malaysia and Vietnam as official member countries of the
network. A stronger, higher volume supply of steel from Vietnam to Malaysia
will boost the automotive supply chain network between the two countries, which
could help improve resilience against the US tariffs.
Currently, Vietnam has a deal with the US for a 20% tariff
on all imports, while Malaysia has not yet secured a deal and the US is
threatening tariffs of 25% in Malaysia. Malaysia is the only Southeast Asian
country to receive a higher tariff after negotiating, but its minister of
Investment, Trade and Industry, Tengku Zafrul Abdul Aziz said the country would
not compromise on its “red lines” of national interest in the process of
brokering a trade deal.
While the removal of the anti-dumping tariffs does not
immediately offer a benefit in terms of transshipments to evade higher duties,
it could signal that the ASEAN network is aiming to strengthen its internal
trading, rather than boost exports to North America.
