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Egypt has issued a preliminary determination in the safeguard review investigation concerning hot-rolled flat steel imports from all sources. This development indicates that the country continues to maintain and adjust its trade remedy instruments to control imports and protect its domestic industry.
According to the preliminary findings, the investigating authority has approved a plan to adjust the safeguard duty rate following a gradual reduction roadmap over three years. Specifically, the duty will be set at 13.6% in the first year, then reduced to 13%, and further to 12.5% in the subsequent years. At the same time, the price floor mechanism will also be adjusted accordingly, creating a dual control framework over both the price and volume of imported goods.
The continuation of safeguard measures, even with gradual reductions, shows that Egypt still considers there to be significant pressure from imports on its domestic industry. In practice, safeguard measures are typically applied when there is a sudden surge in imports that causes or threatens to cause serious injury to domestic producers.
Notably, the scope of application of this measure is broad, covering multiple categories of hot-rolled steel products under various HS codes. This reflects a comprehensive regulatory approach, not limited to a specific segment but extending across the entire product group that may impact the domestic market.
The issuance of a preliminary determination also signals a high likelihood that the safeguard measure will continue in the next phase. Furthermore, in the context of increasing global use of trade remedy instruments, it cannot be ruled out that Egypt may expand or apply similar measures to other products if necessary.
Impacts and Warnings for Vietnamese Enterprises
Egypt is considered a potential market for Vietnam’s steel exports, particularly as demand for construction and industrial materials in the Middle East and North Africa region continues to grow. However, the maintenance and adjustment of trade remedy measures on hot-rolled steel serve as an important warning signal for exporting enterprises.
As the safeguard measure is applied on a global basis (covering all sources of imports), Vietnamese enterprises may be directly affected if they export products falling within the scope of the measure. Even in cases where export volumes are not yet significant, the risk of impact remains due to the non-discriminatory nature of the measure.
In addition, the combination of duty rates and a price floor mechanism indicates a higher level of control over imports. Enterprises must not only compete on pricing but also ensure compliance with minimum thresholds set by the authorities.
On the opportunity side, restrictions on certain traditional suppliers may create room for Vietnamese enterprises to enter the market, provided they can meet requirements on quality and pricing. However, to capitalize on these opportunities, enterprises should closely monitor policy developments and adopt flexible export strategies while ensuring full compliance with trade remedy regulations.
In the long term, enhancing competitiveness, controlling costs, and diversifying export markets will be key factors enabling Vietnamese enterprises to mitigate risks and effectively adapt to an increasingly trade remedy-intensive global environment.
To protect their legitimate interests, manufacturers and exporters should familiarize themselves with the procedure and actively contact Vietnam Antidumping Law Firm specializing in anti-dumping and trade remedy for timely assistance.
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