The Bureau of Foreign Trade yesterday filed a lawsuit against Canada for levying antidumping taxes on Taiwan’s welded carbon and alloy-steel tubes via the WTO’s dispute settlement mechanism, a bureau official said.
Bureau Director-General Yang Jen-ni (楊珍妮) said the Canadian government in 2012 started investigations and later levied antidumping taxes on welded carbon and alloy-steel tubes imported from seven countries, including Taiwan.
“The highest tariff rates Canada imposed on Taiwanese products is 54.2 percent, which heavily impacted Taiwanese manufacturers’ exports,” Yang said.
She said that it is against the WTO’s agreement for Canada to impose antidumping tariffs on Taiwan’s welded carbon and alloy-steel tubes.
Yang said that many countries have adopted various countermeasures against low-cost imports to protect their own products in recent years.
Many countries have levied antidumping taxes on Taiwanese products, harming the nation’s trade interests, with Canada’s antidumping tax measures affecting Taiwan’s export output by nearly US$30 million, Yang said.
Yang said the Ministry of Economic Affairs filed an official request for a bilateral negotiation with Canada over the issue through the WTO in June 2013, but as Ottawa declined to compromise, the ministry decided to sue.
The export output of Taiwanese welded carbon and alloy-steel tubes to Canada was US$19 million in 2011 and the figure dropped to US$11 million the next year, then dropped in 2013 to just US$5 million, the bureau’s data showed.
The bureau said Canada also initiated antidumping investigations on Taiwanese oil tubes, screws and screw nuts.
Minister of Economic Affairs John Deng (鄧振中) said this is the fourth time that Taiwan has filed a lawsuit via the WTO, but the first time it has sued a specific country to protect its trade interests.
“Although an international lawsuit via the WTO will take a lot of time and effort, we must send a message to other countries and let them know that they cannot bully us,” Deng said.
The bureau said it expects the WTO to hold the first court session in the lawsuit in April, adding that the court might reach a preliminary conclusion at the end of this year or next year.
Yang said Indonesia has also adopted countermeasures against Taiwan’s welded carbon and alloy-steel tubes, while Turkey recently started an antidumping investigation on Taiwan’s smartphones and wallpapers.
She said the government would propose a bilateral negotiation with Indonesia in the first half of this year.
ADVANCED: Previously, Taiwanese chip companies were restricted from building overseas fabs with technology less than two generations behind domestic factories Taiwan Semiconductor Manufacturing Co (TSMC, 台積電), a major chip supplier to Nvidia Corp, would no longer be restricted from investing in next-generation 2-nanometer chip production in the US, the Ministry of Economic Affairs said yesterday. However, the ministry added that the world’s biggest contract chipmaker would not be making any reckless decisions, given the weight of its up to US$30 billion investment. To safeguard Taiwan’s chip technology advantages, the government has barred local chipmakers from making chips using more advanced technologies at their overseas factories, in China particularly. Chipmakers were previously only allowed to produce chips using less advanced technologies, specifically
The New Taiwan dollar is on the verge of overtaking the yuan as Asia’s best carry-trade target given its lower risk of interest-rate and currency volatility. A strategy of borrowing the New Taiwan dollar to invest in higher-yielding alternatives has generated the second-highest return over the past month among Asian currencies behind the yuan, based on the Sharpe ratio that measures risk-adjusted relative returns. The New Taiwan dollar may soon replace its Chinese peer as the region’s favored carry trade tool, analysts say, citing Beijing’s efforts to support the yuan that can create wild swings in borrowing costs. In contrast,
VERTICAL INTEGRATION: The US fabless company’s acquisition of the data center manufacturer would not affect market competition, the Fair Trade Commission said The Fair Trade Commission has approved Advanced Micro Devices Inc’s (AMD) bid to fully acquire ZT International Group Inc for US$4.9 billion, saying it would not hamper market competition. As AMD is a fabless company that designs central processing units (CPUs) used in consumer electronics and servers, while ZT is a data center manufacturer, the vertical integration would not affect market competition, the commission said in a statement yesterday. ZT counts hyperscalers such as Microsoft Corp, Amazon.com Inc and Google among its major clients and plays a minor role in deciding the specifications of data centers, given the strong bargaining power of
TARIFF SURGE: The strong performance could be attributed to the growing artificial intelligence device market and mass orders ahead of potential US tariffs, analysts said The combined revenue of companies listed on the Taiwan Stock Exchange and the Taipei Exchange for the whole of last year totaled NT$44.66 trillion (US$1.35 trillion), up 12.8 percent year-on-year and hit a record high, data compiled by investment consulting firm CMoney showed on Saturday. The result came after listed firms reported a 23.92 percent annual increase in combined revenue for last month at NT$4.1 trillion, the second-highest for the month of December on record, and posted a 15.63 percent rise in combined revenue for the December quarter at NT$12.25 billion, the highest quarterly figure ever, the data showed. Analysts attributed the