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Protective Fastener Tariffs Being Hot Issue in Russia
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2013-05-31
“It has been 21 months for Russia to levy protective duties on imported steel fasteners since March 2011, however, the measure does not cause a negative outcome for the fastener industry and a positive influence is just ahead because the protective duties actually stimulated the domestic investment of Russian industries,” said Chairman Yarantzev of Prommetiz.
He added, “Unfortunately, the measure will only last for 3 years and will expire in March 2014. If we can prolong the measure with 6 more years, then Russia will have its own modern mechanical fastener industry until 2020.”
Prommetiz, representing the largest metal product manufacturer in Russia, is striving for the extension of the measure. Yarantzev believes that the extension will reinforce the productivity of Russian producers and find out its advantage within the competition with imported products. On March 18, 2011, Russia decided to levy protective duties on imported steel fasteners and will last for 3 years until March 17, 2014. Rosmetiz, however, doubts the benefits the measure could bring.
Rosmetiz said that with the increasing production and consumption of fasteners in Russia, the number of imported fasteners did not change a lot during the interval of the measure. The total export of fasteners made in Russia in 2012 declined 37.1% over the same period. Rosmetiz believes that the competition between Russian and foreign manufacturers will continue. Coordinator Alexander Semenov of Rosmetiz said that the challenges facing the current Russian hardware industry cannot be solved only through equipment upgrade, but also through technological development. Thus, the cost can be reduced and the competition with imported products can be won with competitive prices. In addition, the technological development can force manufacturers to produce high quality fasteners. Semenov concluded, it is very obvious that Russian fastener industry cannot go toward a better development with only the extension of protective duties or buying fasteners only in Russia. The current condition has proved this.
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