Stainless steel flat products not to be included in RCEP: JSL

Jindal Stainless Limited, a key player in the domestic stainless steel sector, has come out strongly against inclusion of stainless steel flat products in the Regional Comprehensive Economic Partnership (RCEP), a proposed free trade agreement (FTA) between 10 ASEAN countries and six Asia Pacific states with which ASEAN has existing FTAs, since it is expected to pave the way for Chinese imports through zero duty access. The company has issued a statement coinciding with the Inter-Ministerial Meet being held in Singapore on November 12-13, 2018, reportedly for drawing ‘substantial conclusions’ to the RCEP agreement between 16 countries, including China. Citing it as a grave concern for domestic stainless steel industry, JSLNSE -4.80 % managing director Abhyuday Jindal said: “As India’s largest stainless steel producer and the leading voice in the stainless industry, we strongly oppose inclusion of stainless steel flat products (HS code 7219 & 7220) in the RCEP agreement. The move will open flood gates of Chinese imports into India through zero duty access.” “Inclusion of stainless steel products in RCEP will result in a huge surge in imports from China. This may result in immediate shut down of small scale units and also impact the organised sector,” he said. Investments worth nearly Rs 35,000 crore made by domestic industry in capacity building would be in jeopardy, the statement said. The government must review its stand on including stainless steel products in RCEP and also consider the protectionist stance being opted by nations worldwide which in turn poses a threat for the Indian industry because of diversion of trade flows,” the statement added.