Ammon News - AMMONNEWS - Eight steel Jordanian corporations requested former minister of Industry and Trade, Sami Qamwa's mediation to take urgent protective measures to face the serious damage incurred by the large increase in importing reinforced steel in the recent years.

The corporations pointed out that the great increase in importing reinforced steel, violating the applicable laws and regulations and the international conventions, at low prices, has damaged the national industry and incurred severe losses in the last three years, despite the growth of the building and construction sector that was supposed to enhance the national production's indicators.

The eight steel Jordanian corporations' attorney Mr. Mohammd Ahmed Taqatqa, said in a press release, that the imported reinforced steel that is used in the construction industry, doesn't outclass the local product, in fact they are quite identical and similar, according to the applicable specifications and standards and the customs terms in the Kingdom.
He also pointed out that what happened in the recent years is that the local market was flooded with imported steel at the expense of the national product, in a way that lead to a severe deflation of the local product, that caused great losses, in addition to losses caused to national economy.

The local corporations supported the protection request, with numbers and statistics issued by the Department of Statistics regarding the imports, production volume, and the financial and economic variables related to reinforced steel industry.
The corporations' request was based on the law on the protection of the national production No. (21) for the year 2004, the protection of the national production regulation No. (55) for the year 2000, the World Trade Organization conventions, the application of the protective measures agreement / article (19) of the WTO convention, and the practical applications issued by WTO in terms of the reinforced steel.
Paragraph one of the second article of the application of the protective measures agreement / article (19) of the WTO convention states that: "the member (country) may not apply the protective measures on a certain product if the member finds out, according to the listed provisions, that this product is imported in big quantities to its land, whether relatively compared to local production, or in circumstances that would cause or threaten to cause severe damages to the local industry that produces similar or competitive products in a direct way".
While paragraph two states that: "the protective measures shall apply to the imported product regardless of its source".

The report provided by the damaged corporations indicated that many countries imposed protection on its reinforced steel industry according to such legal provisions as well as its local laws; it also imposed anti-dumping duties, in light of the fierce competition in this industry worldwide, including Egypt and USA.
The report that composes of 53 pages indicates that Jordan: "shall be one of the first countries to defend its local industry and protect its economy to face the unjust competition the local plants are dealing with".

The report also shows that "serious damage" was clearly illustrated by the fact that the Jordanian corporations had to sell its products with prices less than the production cost, in an attempt to maintain its operations, provide liquidity, pay thousands of workers and engineers' wages and to avoid the double losses in case of complete shutdown.

The report warned that the incurred serious damage caused the partially shutdown of some plants during the last three years, while some corporations (protection request applicants) have stopped its production in the meantime, and many other plants are threatened of complete shutdown.

It was mentioned in the report that "the market share has been lost while the importation prevailed the local market… warning that countries usually take immediate protection measures in case of "threat of severe damage" while the damage is already realized in Jordan.

The numbers issued by the Department of Statistics that the size of import in the last four years has suddenly and increasingly ascended in an unjustifiable way.
They elevated in 2008 to 2011 chronologically as follow: from (13.774) ton in 2008 to (82.100) ton in 2009 to (117.946) in 2010 to reach (148.659) ton in 2011.

The elevation percentage came as follow: (442.79%) in 2009, (679.77%) in 2010 and (882.82%) in 2011.

The reinforced steel import percentage compared to local production has increased from (2.45%) in 2008, to (14.61%) in 2009, to (26.79%) in 2010 to finally reach (33.55%).

The corporations that requested the former minister of Industry and Trade's mediation are:

Jordan Steel, United Iron & Steel Manufacturing, and National Steel Industry all (Public Joint Stock) and five others of limited liability: General Specialized Steel Manufacturing Co., Universal Iron & Steel Industry Co., Arabian Iron & Steel Industry Co., Petra Iron & Steel Industry Co., and (Jordanian Iron & Steel Industry Co(..