Navigating the European Commission’s Anti-dumping Investigation: A Critical Moment for Egyptian Steel Manufacturers

On 8 August, the European Commission announced they initiated an anti-dumping investigation into certain non-ferrous products originating from Egypt, India, Japan, and Vietnam. This significant development, detailed in the Official Journal of the European Union, highlights the EU's efforts to protect its steel industry from perceived unfair trade practices. The investigation centers on allegations by the European Steel Federation (Eurofer) that hot-rolled flat steel products from these countries, including Egypt, are being dumped into the EU market, causing substantial economic harm to the European steel industry.

The Basis of the investigation

Eurofer’s complaint, which triggered the European Commission's investigation, argues that the influx of hot-rolled flat steel products from Egypt and the other named countries has negatively impacted the EU steel industry. The complaint asserts that these imports were sold at unfairly low prices, undercutting European producers and resulting in significant adverse effects on the market. According to the Official Journal notification, the evidence provided by Eurofer indicates that these low-priced imports have led to a decrease in the quantities sold by European producers, a reduction in the prices they can charge, and a loss of market share. This has subsequently harmed the overall financial performance, employment levels, and long-term sustainability of the EU steel industry.

The European Commission mentioned that the investigation will cover the period from 1 April 2023, to 31 March 2024, focusing on whether the dumped imports have caused material injury to the EU steel industry. Additionally, the examination of trends relevant to assessing injury will cover from 1 January 2021, to the end of the investigation period. 

Potential impact on Egyptian steel manufacturers

The anti-dumping investigation is not the only challenge that Egyptian steel manufacturers might face. In parallel with the investigation, there is the possibility of antitrust scrutiny by the European Commission and other national enforcers within the EU.

The European Commission has broad authority to investigate and enforce competition laws designed to prevent anti-competitive practices such as price-fixing, market-sharing, or abuse of dominant positions. If any such violations are identified, the consequences could include significant fines, restrictions on market access, and long-term damage to the reputation and operations of Egyptian steel producers.

The implications of this investigation are profound for Egyptian steel producers. If the European Commission determines that dumping has occurred, it could impose anti-dumping duties on Egyptian hot-rolled flat steel imports. These duties would likely raise the cost of exporting to the EU, making Egyptian steel less competitive in one of the world's largest markets. The resulting loss of market share could lead to decreased revenue and profitability for Egyptian producers, potentially forcing them to scale back production or seek alternative markets.

Moreover, if the investigation uncovers evidence of anti-competitive practices, Egyptian steel producers could face additional legal and financial penalties. Such findings could also lead to increased scrutiny from other global markets, compounding the challenges faced by these companies.

The timing of this investigation is particularly critical, as it coincides with a period of uncertainty in the global steel market. Despite the widespread anticipation of the European Commission's decision, the market's reaction has been one of caution. Many industry participants are unsure of the long-term implications of the investigation, with outlooks remaining speculative. However, the potential risks for Egyptian producers are clear, and they must be prepared to respond to any adverse findings.

At BREMER Law Firm, we fully understand the profound implications that the ongoing anti-dumping investigation by the European Commission could have on Egyptian steel manufacturers. This investigation is not just a routine inquiry; it represents a critical juncture that could significantly impact your access to and competitiveness within the European market.

The allegations of unfair trade practices and potential market distortions demand a proactive and strategic response. Our firm is deeply understanding the importance of supporting Egyptian steel manufacturers through this challenging period. We offer specialized guidance and robust representation before both the European Commission and Eurofer to ensure that your interests are vigorously defended.

We believe it is essential for your business to be thoroughly prepared to address these allegations and mitigate any adverse outcomes. By partnering with us, you gain access to our extensive expertise in navigating complex regulatory environments and antitrust matters under both Egyptian and European law. Our diverse legal team comprises both EU and Egyptian qualified lawyers. As such BREMER is uniquely poised to assist Egyptian businesses in addressing and navigating the investigation by the European Commission and any subsequent matters arising out of the investigation the allowing you to effectively safeguard your market position and ensure long-term success in Europe.