(ANSA) - Rome, April 2 - The European Union's decision to
impose tariffs on Brazilian steel products, announced in
January, set off an alarm in the sector in Brazil.
Seen as part of the trade war triggered by US President
Donald Trump, the Brussels measure will affect seven sectors of
the national steel industry - such as pipes, sheets and blades -
which will pay 25% in surcharges starting from a certain quota.
The initiative is a reaction to the international steel
barriers, in particular Chinese ones, imposed by Trump, which
have led to the mass arrival in the EU of products destined for
the American market.
"It is a complication, I think we will not emerge unscathed
from these decisions," said Carlos Eduardo Baptista, president
of the Brazilian Metal Tubing and Accessories Industry
Association (Abitam), organizer of the Tubotech fair, in
collaboration with Cipa Fiera Milano, scheduled for 1-3 October,
in Sao Paulo.
Currently, Brazil represents 2% of the global production of
pipes, with a total of 5 million tonnes a year. According to
Baptista, any obstacle placed on the world market will
inevitably spark great fear in the country.
The Brazilian market has a strong presence of multinationals,
such as the French Vallourec and the Italo-Argentine Tenaris,
which maintain global strategies and have plants in other
countries. If the Brazilian product becomes more expensive,
they might move their exports towards other units.
"As soon as barriers are created on one side or another, that
produces problems. I think that well in any case feel the impact
of the these reprisals among great powers, although almost at
the root all these measures come from China's decision to market
all over the world steel products with a price well below trade
standards," added the president of Abitam.
This way, too, according to Baptista, the tubing sector
should still present a positive sign in 2019, albeit timid,
after a year of insignificant growth.
"Historically, the growth of the sector is double that of GDP,
and if the government really expects GDP growth, then the market
can still grow: if it were to reach growth of 2-3%, we would be
very happy," he stressed.
The government and major infrastructure projects are the main
buyers in the pipes market, as is the building sector, the oil
and gas sectors and the car industry.
"We expect that the first half of the year will be marked by
a clash between the government sand parliament to approve the
first reforms: in the meantime, the market is still waiting,
even though it maintains optimism", Baptista added.
One of the pieces de resistance of the government of
Jair Bolsonaro is in fact the promotion of the country's
insertion into international trade, also via the reduction of
import tariffs, but for the president of Abitam this must be
accompanied by a reduction of what he calls "the Brazil cost".
"We are burdened by a series of expenses that doe no exist in
the rest of countries. If the government commits to gradually
reducing import tariffs and at the same time moves to
progressively reduce the 'Brazil cost', we have nothing to
object," said Baptiste, according to whom "Brazil must
competitive, but the firms already are".
Brazil steel pipe production set to grow despite EU tariffs
Signal of alarm in Brazil