Photo: Wikimedia Commons.
Acerías PazdelRío, Colombia’s leading integrated steelmaker, has filed a request with the Ministry of Commerce and Industry to impose safeguarding measures on steel imports from China and Russia. The request, lodged last November with the Committee on Customs, Tariffs, and Foreign Trade Affairs, addresses concerns about unfair competition faced by local production.
According to Fabio Galán, the company’s president, steel imports from China and Russia surged by a staggering 45% between the first and second halves of last year. Additionally, prices for products from those markets have been on average 36% lower than those offered by countries with which Colombia does have Free Trade Agreements (FTAs).
Galán stressed that this unfair competition severely impacts the national industry, jeopardizing the survival of companies like PazdelRío and posing risks to the employment and incomes of over 21,000 people who depend directly and indirectly on the company’s operations.
The request for safeguarding measures aims to protect local production and promote fair competition, aligning with the country’s National Reindustrialization Policy. Furthermore, PazdelRío emphasizrd its commitment to the national industry, revealing that 91% of its purchases are from Colombian suppliers, generating significant income for the national economy.
The company urged relevant authorities to consider imposing measures on steel from countries with which there are no free trade agreements in place, following the example of the United States, Canada, Mexico, and Brazil. PazdelRío underscored that relinquishing the national industry in favor of lower international prices would be a high cost for the country in terms of supply security and social value generated by this activity.
With a 75-year history, PazdelRío is the primary job creator in the Colombian state of Boyacá, providing direct income to 7,000 people and benefiting another 14,000 indirectly. The company reaffirms its commitment to defending the national industry and expects a prompt response from authorities to ensure its viability and contribution to the country’s economic development.
This occurs against a regional backdrop marked by trade tensions, where the conflict between the United States and Mexico over steel and aluminum imports has become increasibgly significant. While the U.S. government, led by Joe Biden, threatened to reinstate tariffs on Mexican products due to alleged triangulation practices from China, Mexico defended itself by citing a significant deficit in steel and aluminum trade, as well as transparent cooperation in its imports.