Colombia investigates dumping in Chinese aluminium imports

Photo: Wikimedia Commons

Colombia has launched an investigation into imports of aluminum from China, alleging possible dumping. This measure follows the initiative of the United States, which is carrying out similar investigations with several countries, including Colombia. In the Colombian case, Resolution 319 of the Ministry of Commerce, Industry and Tourism, issued on December 13, 2023, marks the beginning of an administrative investigation to evaluate the existence and effects of said dumping on imports of aluminum from China.

Dumping is the unfair commercial practice through which a company sells its products at a price lower than the cost of production or the market price in the country of origin, with the aim of gaining a market share or eliminating local competition. This strategy can harm local businesses by distorting competition and causing economic damage. To address this problem, many countries apply anti-dumping measures, such as imposing tariffs or establishing restrictions to protect their industries and prevent unfair trade practices.

Colombian exports of aluminum extrusions have seen a significant increase, reaching $556 million in 2022 and $659.5 million between January and November 2023, with the U.S. as the main destination, representing 95.2% of the total. However, there are concerns that these exports could suffer losses of up to $500 million if dumping is confirmed in U.S. investigations.

Local companies, such as Aluminio Nacional S.A. – Alumina S.A. and Aluica S.A.S., have denounced a marked undervaluation compared to national prices of the product, which has negatively affected national production and generated job losses. Resolution 319 seeks to address these concerns and protect the domestic industry from the possible adverse effects of imports at unfair prices.

The investigation in Colombia reflects China’s aggressive commercial stance in this market, similar to that being investigated in the United States. The measures resulting from this investigation are expected to reflect Colombia’s commitment to maintaining a fair and equitable trading environment, thereby protecting the interests and competitiveness of its domestic industry from unfair trade practices, such as dumping.

The practice of dumping is considered a threat to free global competition, and the actions taken by Colombia seek to mitigate its possible impacts on the country’s aluminum extrusions sector.