Petition boosts SA's case at free trade talks
Trade and Industry Editor
ANGLO subsidiary Hulett Aluminium will vigorously oppose a new antidumping action which was tabled against it last week by the world's largest aluminium firm Alcoa.
However, this latest attack on SA's exports to the US strengthens the case for SA to seek new agreements on antidumping in the free trade area talks taking place between the Southern African Customs Union (Sacu) and Washington.
If the antidumping petition were to be successful, large antidumping duties could be slapped on exports from SA of the aluminium product in question alloy rolled plate, which is used for general purpose engineering, tooling and die applications.
Alcoa announced last week that it had filed an antidumping petition with the US commerce department and the International Trade Commission, a government agency which advises the US administration on trade policy. Hulett must now file replying submissions to the same bodies.
Alcoa complained that "unfair trade practices" by Hulett Aluminium have damaged the US industry.
"The antidumping petition shows that Hulett exports aluminium plate to the US at dramatically lower prices than it sells the material in its home market," said Alcoa. "Those unfair sales have damaged the US industry by eroding market prices below sustainable levels."
The president of Alcoa's North American fabricated products division Paul Thomas said the firm does not normally seek antidumping measures.
"However, Hulett's dumping in the US marke t has been so blatantly unfair that it demands a response.
"This petition is targeted at a case where antidumping duties are necessary to restore fair competition to the market. In this instance, we feel we must defend the rules of fair trade," said Thomas.
Tongaat-Hulett CE Peter Staude said at the weekend that he questions the validity of Alcoa's complaints, as Hulett Aluminium has "a rolled products worldwide market share of less than 1,2%".
"The market segment cited by Alcoa in its antidumping petition constitutes less than 1% of the total US market for aluminium rolled products and Hulett Aluminium has expressed its surprise at Alcoa's claim of injury to the local industry.
"The fall-off in demand in the related aerospace sector, in which Alcoa has the major market position, has led to downward pricing pressures in the engineering, tooling plate and die applications sector which was cited in the antidumping petition.
"The particular pro duct specified by Alcoa is aluminium rolled plate, alloy 6061, with a thickness greater than 0,25 inches (6,3mm), which is not sold in SA by Hulett Aluminium," he said.
Staude said no antidumping petition had been filed against Chinese and Russian producers "who tend to offer the lowest prices in the US".
South African trade officials have asked Washington to include new antidumping rules in the free trade accord being negotiated between Sacu and the US for fear that attempts to reform antidumping within the World Trade Organisation may be delayed .
Hulett Aluminium is a division of Tongaat-Hulett. Tongaat-Hulett closed 0,44% lower at R34,15.
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