Inbizzy, Kuala Lumpur, Malaysia – Malaysia has announced the imposition of anti-dumping duties on certain iron and steel products imported from China, South Korea, and Vietnam. The decision follows a comprehensive investigation into the effects of products being sold at prices below fair market value in the domestic market.
What is an Anti-Dumping Duty?
An anti-dumping duty is a tariff imposed on foreign products sold at prices lower than the domestic market or the normal price in the country of origin. The purpose of such duties is to protect local industries from unfair competition caused by dumping—when products are sold in foreign markets at prices below the cost of production or normal selling prices in the exporting country.
Background of the Policy
The Malaysian government, through the Ministry of International Trade and Industry (MITI), stated that the imposition of anti-dumping duties is aimed at protecting the domestic steel industry from unfair pricing practices. The imported iron and steel products covered by this policy were assessed to have the potential to disrupt the sustainability of local steel producers by being sold at unreasonably low prices (Source: Ministry of International Trade and Industry Malaysia).
Impact on the Domestic Steel Industry
The anti-dumping duties are expected to help local steel manufacturers compete more fairly with imported products. By imposing these tariffs, the government intends to alleviate the pressure on domestic producers who have been struggling with thin profit margins due to unfair pricing in the market.
Reactions from Affected Countries
This move by Malaysia is likely to impact trade relations with China, South Korea, and Vietnam, the countries whose products have been targeted by the new duties. These nations may reassess their export strategies to Malaysia and could respond through diplomatic channels or trade negotiations to address the issue.
Malaysia will continue to monitor the implementation of this policy and conduct regular assessments. The government also hopes the policy will help boost the competitiveness of the domestic steel industry in both local and global markets.
