According to Al Arabiya Business review, The European Union has announced a reduction in provisional anti-dumping duties on Egyptian-origin hot-rolled flat steel products, lowering the rate from 15.6% to 12.8%. This decision comes after strong opposition led by Ezz Steel, Egypt’s sole producer in this segment. The Egyptian side argued that their exports represented only 1.3% of the open market and that the country's production capacity has remained unchanged for years, making the initial duty disproportionate.
The Egyptian government and Ezz El Dekheila challenged the EU’s reliance on official exchange rates in its dumping calculations, instead submitting independent audit reports based on parallel market rates. These reports were backed by documents from Ernst & Young, the IMF, and the Central Bank of Egypt for 2023–2024. Egypt also pointed out exaggerated freight costs and the use of pricing data from two local firms unrelated to the investigated product.
The European Commission acknowledged challenges in foreign currency transfers and the exceptional circumstances in Egypt’s exchange regime. It accepted the use of parallel market rates for Ezz Steel’s financial reporting, noting that sale conditions are determined at the time of contract signing rather than invoice issuance. As a result, final calculations were adjusted using monthly market data. The provisional duties took effect on April 7 and will remain in place pending a final decision in the coming months.
Comments
No comment yet.