AS the Philippines looks to boost its steel production to supply both domestic and export demands, it has asked Canada—one of its potential markets—at the World Trade Organization (WTO) to go slow on implementing protectionist measures on steel products.
In a statement obtained by the BusinessMirror, the Philippines requested Canada at its 11th Trade Policy Review to explain the increase in its use of antidumping measures over the past years. It pointed out most of Canada’s trade remedies are applied on steel, which the Philippines began exporting again in March after many decades.
“Canada is an active user of trade remedies and it has shown increase in the use of antidumping measures in recent years with 83 definitive antidumping measures in place as of end of 2018,” the statement read.
“More than two-thirds of these measures were applied on steel products. In this respect, the Philippines would like to know more about the factors that have contributed to the increase and encourages Canada to exercise circumspection in taking these measures,” it added.
SteelAsia Manufacturing Corp. put the Philippines back on the map of steel exporting after delivering its first shipment of rebars to Canada in March.
The shipment contained 10,000 metric tons of rebar valued at some P300 million. Rebars are used by construction firms to provide tensile strength for infrastructure, buildings, housing, among other structures.
Canada was the world’s 16th- largest steel importer in 2017. Its purchases that year represented about 2 percent of all steel imported globally, according to the Global Steel Trade Monitor of the United States Department of Commerce.
Last year its steel imports ballooned 19.54 percent to 10.4 million MT, from 8.7 million MT in 2017. Canada imports steel from 100 countries and territories, with the US, China and Turkey as its top import sources.
In spite of the objection to trade remedies applied mostly on steel, Manila recognized at the review its longstanding trade relations with Ottawa.
Data from the Philippine Statistics Authority (PSA) showed bilateral trade between the two economies expanded 16.66 percent to $1.4 billion last year, from $1.2 billion in 2017. The improved merchandise trade was largely brought about by increased imports from Canada that grew 19.77 percent to $800.71 million, from $668.53 million.
On the other hand, shipments to Canada also improved 11.45 percent to $600.28 million, from $538.6 million.
“The Philippines and Canada have a longstanding bilateral economic relations,” the statement read. “Among the top traded products between the two countries are ignition wiring sets, copper ores, wood and airplanes.”
The Philippines also commended Canada for advancing the interests of micro, small and medium enterprises in the WTO, as well as for staying on the side of the multilateral trading system at a time it is challenged by the trade war between the US and China.