2024-03-29 04:41:03
In dialogue with EL DÍNAMO, economist Victoria Paz warned that any measure adopted by Chile must consider that 40% of our exports are destined for China.
The presidential delegate of Biobío, Daniela Dresdnerreiterated this Monday the Government’s commitment to the Huachipato Steel Company and valued the efforts to reverse the crisis that the industry is experiencing due to the dumping of Chinese steel.
After meeting with union, community and regional leaders, Dresdner stated that everyone in the Biobío Region “We agree on one thing: the importance that Huachipato has for our region“
The presidential delegate also assured that “We will continue working tirelessly until we achieve a solution for Huachipato“.
In this regard, he said that “we have discussed with parliamentarians different legal solutions that can be delivered.” He explained that according to current legislation “the agreement of the company is undoubtedly required for any step that is going to be taken“.
“For that reason the minister (of Economy) has been working constantly and side by side with the firm to reach a solution“, closed the representative of the Executive.
Chinese dumping is not only in steel
To analyze what is happening with the Chilean company, THE DYNAMO spoke with economist Victoria Paz, who immediately stressed that it is “a phenomenon that has also occurred in other parts of the world“.
He recalled that “the accusation of dumping on Chinese products has occurred not only in steel, but also in electric bicycles in Europe, for example. In fact, the European Union, the United States and Mexico have raised tariffs,” he said.
Regarding what is happening with Siderúrgica Huachipato, the professional stated that “I believe that the appropriate institutional framework is being used, which is the Anti-Distortion Commission, to request not a subsidy, but rather an increase in tariffs. with which the products enter the country. That way, they argue, they could compete on equal terms.”
Three key factors
In this regard, Victoria Paz drew attention to three factors that she considers relevant. The first is that “An increase in tariffs must necessarily be accompanied by a general review of the company’s productivityso that its competitiveness increases.”
The second issue he warns about is that “we have to consider that Any resolution that is taken must take into account that 40% of our exports are destined for China.“.
And finally, that “we should not resolve one distortion with another distortionsince subsidies that do not allow us to see lack of efficiency or higher tariffs than appropriate, can ultimately generate new problems in the market if technical criteria are not taken into account.“.
How it would affect unemployment in the region
Regarding how the possible definitive closure of Huachipato would affect, the economist recalled that the industry “It provides 3,000 direct jobs and another 22,000 indirect jobs, so the region would be tremendously affected, directly impacting at least 1 point in unemployment in the area.“.
“They are companies that generate jobs and important productive chains in a population and this is why the attention and concern is justified“, he concluded.
What the CPC said
The president of the Confederation of Production and Commerce (CPC), Ricardo Mewes, also referred to the possible closure of the Huachipato Steel Plant, who maintained that the issue “was channeled as it should. The Distortions Commission has mentioned the surcharge and we have to respect the institutionality that we ourselves have established. So all the corresponding steps have been taken here.”
In an interview with radio Pauta, he said that “we are very empathetic with the people who are going to lose their jobs. We must have the powers through the Sence, through the State institutions, to transform all these people so that they have the option of seeking other positions.“.
Workers’ demonstrations
On the other hand, during this Monday A massive demonstration was held in Talcahuanoin which hundreds of Huachipato workers took part.
Participants They gathered in front of the company, at the Huachipato Roundabout, which interrupted traffic in the place..
The president of the Huachipato Workers Union 1, Héctor Medina, told radio Biobío that the demonstration is a “response to the need to protect the steel industry in Chile“.