DFT said WTO allows ‘safeguard measures for H-beam with alloy

The department is also confident that due consideration will be given, taking all stakeholders into account.
Following a substantial increase in the import of structural hot rolled H-beam with alloy — resulting in a loss of revenue to the state due to its tax-evasive nature, damage to the domestic industry’s competitiveness and risks to the lives and properties of consumers who are unaware that the material in question is not included in the Thai Industrial Standard 1227-2558 (2015). the government has announced safeguard duties on structural hot rolled H-beam with alloy, effective January 28, 2017.
Wanchai Varavithya , Deputy Director-General of the Department of Foreign Trade, asserted that the WTO allows free-trading countries with increased imports to take a safeguard action against such imports under certain conditions, namely an unforeseeable substantial increase in the import of a particular product due that threatens to cause serious injury to a domestic industry. To take a safeguard action, which comprises short-term measures of three or six years, the affected domestic industry must also implement an adjustment plan. The purpose of the safeguard is to temporarily erect a hyperbolic wall that will allow the affected industry time to strengthen itself. Once this goal is achieved, the wall is removed and free trade resumes.
Wanchai reaffirmed that due consideration will be given to safeguard measures prior to implementation. The affected parties will first present evidence of increased imports. The cause of such an increase will be examined, such as safeguards implemented in other countries leading to an influx of imports into Thailand, which constitutes an unforeseeable cause. Furthermore, affected parties will also detail how they are affected and propose an adjustment plan they will be implementing.
“The investigation will take a year, taking into account all stakeholders, which is very important because a safeguard action must take into consideration the benefits to society at large, including consumers, buyers and importers of such products. Effects on relevant parties must also be minimized. For instance, can our domestic industry produce the product in question? If it cannot, we must make an exception to import it,” Wanchai stated.