MOE Successfully Terminated 2 Countervailing Investigations on UAE Exports of Steel Pipes

Mr Abdullah Sultan Al Fan Al Shamsi assistant undersecretary for Industrial Affairs at the Ministry of Economy affirmed that the Ministry of Economy successfully terminated two countervailing investigations on UAE exports of steel pipes initiated by the Canadian Borders Services Agency on May 15th 2012 and the United States International Trade Commission on November 15th 2012.

Mr Al Shamisi confirmed that the CBSA which is the Canadian investigating authority on subsidization issued on November 9th 2012 a negative final determination on subsidy in respect of UAE and therefore terminated the subsidy investigation concerning UAE exports of steel pipes. The termination of the investigation was on the basis of the arguments and evidences provided by the MoE in response to the CBSA requests for information and the verification visit that the CBSA investigators carried out at the MoE on September 2012. These clearly demonstrated that the GUAE is not providing any subsidy that might be not consistent with the Agreement on Subsidy and Countervailing Measures.

As regards the US countervailing and antidumping investigations, Abdullah confirmed also that the USITC issued on November 14th 2012 its negative final determination regarding both investigations affirming that the US industry is not materially injured or threatened due to imports of steel pipes from inter alia UAE and consequently, no antidumping or countervailing duty duties will be imposed on UAE exports of the said product to the US market.

Mr Al Shamisi clarified that the US proceedings regarding trade remedy investigations are based on the distribution of competences between two separate entities which are the Department of Commerce and the USITC. The Department of Commerce, empowered to investigate on subsidy and dumping practices issued on October 16th 2012 an affirmative determination recommending the imposition of countervailing and antidumping duties on UAE exports of steel pipes.

The USITC is empowered to investigate on injury and causality between injury and imports and based on the USITC's negative determinations that imports are not causing or threatening to cause injury to the US producers, the investigations have been terminated. As a result all countervailing investigations that have been so far targeting the UAE exports of steel pipes are currently terminated.

Mr Al Shamsi pointed out that the positive results reflect the great efforts of the MoE under the guidance of His Excellency Sultan Bin Saeed Al Mansouri, Minister of Economy to achieve the strategic objectives of the MoE 2011 to 2013 for the Development of the industrial sector reaching competitiveness as well as the great attention shown by Mr Mohammed Bin Abdulaziz Al Shihhi, Undersecretary of the MoE on this subject with the goal of removing trade barriers for UAE exports.

Mr Al Shamisi appreciated the transparency of the proceedings and impartiality of the Canadian and US investigating authorities and indicated that the above determinations upheld the concept of free and fair international trade under the World Trade Organization principles.

The MoE has been defending these principles during its participation to the Rules negotiations mandated under the Doha Ministerial Conference with respect to the ASCM and Agreement on Antidumping in order to confirm its position that trade remedy measures should not be used as disguised protectionism but instead investigating authorities must fully comply with the WTO procedural and substantive requirements and ensure a fair and transparent investigation.

Mr Al Shamisi noticed that several trade remedy measures are imposed against UAE which are not in conformity with the WTO requirements and accordingly the MoE is studying all avenues to reverse such measures under the WTO proceedings, inter alia, the Dispute Settlement Mechanism.

Mr Al Shamsi reiterated that the MoE would never have been able to achieve these results without the support and collaboration of various Federal and Local authorities that provided the MOE with the required data, especially JAFZA, Zones Corp, DEWA, FEWA, ADWEA, Dubai Customs, Abu Dhabi Customs as well as the Ministry of Foreign Trade and Ministry of Foreign Affairs represented by the UAE Embassies to Washington and Ottawa which played a key role in coordinating between the MoE and the investigating authorities.

He said that this constructive and fruitful cooperation between the Federal and local authorities should be a model to be followed in all other matters related to the interests of the UAE and enhancement of the spirit of the union.