Interpipe: without continued duty-free regime, the pipe industry will lose up to 30% of production
The continuation of the "trade visa-free regime" with the EU for Ukrainian steel products for another three years is extremely important for the domestic metallurgy industry in the medium term. This opinion was expressed by Denis Morozov, First Deputy CEO of Interpipe, in a blitz interview with Interfax-Ukraine.
He noted that this is only the first step, since the legislative resolution will enter into force after approval by the EU Council and official publication.
Denis Morozov recalled that in 2022, thanks to the efforts of the Ukrainian leadership, the EU and the United States granted all duties and quotas on paternal steel products. The decision was temporary, for a period of one year, but it was constantly extended and allowed to increase the supply of Ukrainian metallurgical products to these markets, to a certain extent compensated for the loss of other foreign markets.
For example, last year Interpipe enterprises paid UAH 5.5 billion in taxes to the central and local budgets. The contribution of Interpipe Niko Tube, located in the frontline city of Nikopol, is about 2 billion UAH.
The First Deputy General Director of Interpipe noted that in military conditions it is extremely important for metallurgical and pipe enterprises of Ukraine to maintain production volumes. In terms of maintaining and increasing its presence in such key foreign markets as the USA, the EU and Canada, it is a matter of feeding the Ukrainian metallurgical and pipe industries without preference.
Denis Morozov also commented on the return of a 25% duty on imports of steel products to the United States under section 232. According to him, this was a significant blow to the Ukrainian metallurgy. Currently, the American market is one of the most important export destinations for Interpipe products.
The Ukrainian side raised the issue of negotiations on a free trade agreement between the United States and Ukraine. At the same time, Ukraine's trade representative Taras Kachka said that the government is at the initial stage of a dialogue with the United States on the abolition of the 25% duty. Ukrainian metallurgists hope for a positive result of these efforts.
In addition, the exemption of Ukrainian steel products from customs duties and trade restrictive measures by Canada is coming to an end in early June. As Denis Morozov noted, after the delay expires, an anti-dumping duty of 37.4% will be applied to domestic steel products, which effectively excludes any supplies to this country.
The company hopes that the Ukrainian government will appeal to the Canadian side to continue the release for at least 3 years, similar to the one supported by the European Parliament.
If these steps are not completed,