Brasília – The Gulf Cooperation Council (GCC) has concluded a safeguard investigation on imports of steel products and decided against imposing measures against Brazil. The information was confirmed on Tuesday (21) in a joint press release made public by Brazil’s Ministries of Economy and Foreign Affairs.
The ministries reported that, if it was implemented, the safeguard duty would have a negative impact on exports from Brazil to the GCC and “contribute to the chronic problems the global steel industry faces such as overcapacity and protectionism.” The GCC countries are Saudi Arabia, Kuwait, Oman, Bahrain, United Arab Emirates, and Qatar.
The safeguard measures are imposed by countries as way to protect a domestic industry that is being threatened or seriously harmed due to increased imports. The goal is that, while the measures are in force, the domestic industry adjusts, increasing its competitiveness.
“[Brazil’s] Ministry of Economy and Ministry of Foreign Affairs were actively involved in the investigation in defense of excluding national exports from an eventual imposition of safeguard duties, under the Agreement on Safeguards of the World Trade Organization. The decision is a positive outcome for the Brazilian steel industry and Brazil-GCC economic and commercial relations,” the statement stressed.
Translated by Guilherme Miranda
