Growth rate of national exports of steel sheets to the world scored 90% between 2017 & 2019
Abu Dhabi: The UAE Ministry of Economy (MOE) successfully closed the ‘subsidy investigation’ conducted by the Canadian authorities on the UAE’s exports of corrosion-resistant steel sheets. The latest achievement is an important step that contributes to enhancing the competitive and competitive advantages enjoyed by the Emirati products in the Canadian market, compared to other products that are subject to Countervailing Duties (CVDs).
The initiative falls in line with the Ministry’s commitment to addressing the anti-dumping and subsidy allegations that were raised on the UAE’s exports in the global markets. The move falls in line with the Ministry’s strategy to enhance the national products’ entry into foreign markets and increase their global competitiveness by tackling the obstacles that impede their access into the international markets. Closing the investigation also contributes to preserving the UAE’s balance free of any subsidy investigations brought against it by foreign countries.
H.E. Abdullah Sultan Alfan Alshamsi, Assistant Undersecretary for Monitoring and Follow-up at the UAE Ministry of Economy, said that the Ministry’s success in closing the subsidy investigation against the UAE’s exports of corrosion-resistant steel sheets to Canada is a significant achievement, which falls in line with its strategy to support and develop the country’s exports. The move also contributes to strengthening the access of exports, particularly that of locally produced ones, to promising markets and take advantage of the commercial opportunities in various countries all around the world, thereby contributing to the growth of the UAE’s direct exports compared to re-export trade.
He added that this in turn will enhance the added-value contribution to the national economy and will support the UAE’s efforts to protect Emirati investments in the local and foreign markets alike, through taking effective action towards such investigations.
Alshamsi added: “MoE’s move does not only have a bilateral dimension in terms of its relations with the countries that initiated these investigations by providing legal and technical defenses during the various stages of verification, but also has multilateral dimension through the World Trade Organization (WTO).
H.E. Alshamsi said: “The Ministry’s response to these investigations through various legal and technical means under the WTO agreements, contributes to enhancing Emirati exports in the global markets. This serves as an incentive for industrial establishments to maximize their production capacities, which will reflect positively on those facilities by reducing the cost of production, while also supporting the competitiveness of our national products in the domestic market and foreign markets. It also results in an increase in sales and improves the financial indices of industrial establishments, including Return on Investments (RoI) and profitability.” He confirmed that all these results will lead to the development of the UAE’s macro economy and support the private sector, manufacturers, and particularly exporting companies.
Alshamsi pointed out that closing the subsidy investigation opened by the Canadian authorities is an impetus for the UAE’s economic recovery. This will be achieved by keeping foreign markets open to national exports, strengthening the UAE’s efforts to provide the necessary support to enable industrial facilities, thereby ensuring continuity and increase in production, marketing, and expansion. This move also contributes to alleviating the financial and economic impact of COVID-19 pandemic on the manufacturing and exporting of corrosion-resistant steel panels, which is one of the main activities that promote economic growth and diversification in the UAE. Alshamsi praised the fruitful cooperation with the relevant government entities that provided MoE with the required data to offer the legal and technical submissions.
Official statistics indicate that the total value of the UAE’s exports of corrosion-resistant steel sheets to the global markets amounted to AED 1,050 million last year. The statistics showed that the volume of these exports to the Canadian market reached AED 59 million during the same period, which is equivalent to 10 per cent of the total UAE exports globally. The UAE’s exports of corrosion-resistant steel sheets also witnessed a remarkable growth of 90 per cent in 2019 compared to 2017, which confirms the importance of closing the investigation.
By successfully closing the investigation of the Canadian authorities, the Ministry maintained the UAE’s balance free of any subsidy investigations brought against it by foreign countries, thus closing all 5 subsidy investigations raised against the UAE by the European Commission, Egypt, USA, and Canada. The latest achievement is an important addition to MoE’s successes in terminating eight investigations in 2019, bringing the total number of successfully closed anti-dumping, subsidy and prevention investigations to 54 until June 2020. MoE continues its efforts to address around 22 dumping and safeguard investigations that are still going on against the UAE as of the end of June 2020, out of the accumulative number of 76 anti-dumping, subsidy and safeguard investigations that were raised against the country until the same month.