IMPLEMENTATION LEVEL

NFI

AFFECTED FLOW

Inflow

ANNOUNCED AS TEMPORARY

No

NON-TRADE-RELATED RATIONALE

No

ELIGIBLE FIRMS

firm-specific

JUMBO

No

TARIFF PEAK

No
← back to the state act
Inception date: 30 Apr 2015 | Removal date: 28 Jun 2016
Still in force

State loan

The Brazilian National Development Bank (BNDES) announced that it will support the steel company Companhia Siderúrgica do Pecém (CSP) with 2.3 billion real (USD 800 million) in order to build a plant at the Pecém Industrial Port Complex (CIPP) in Săo Gonçalo do Amarante which is located just 8 km away from to the Port of Pecém (see also measure no. 5846 under Related Measures). The company CSP was formed by Brazilian Vale and South Korea's Dongkuk and Posco. According to CSP, the plant will be operable in the first half of 2016 and have a production capacity 3 million tons of steel slabs per year. All of its production is destined for exportation. Besides this, CSP will be the first company to start its production within the ZPE at the Pecém Industrial Port Complex. A ZPE constitutes a free trade zone whose revenues are required to originate from at least 80% of exports. The measure is considered discriminatory since, in general, the Brazilian Development Bank provides credits with below-market interest rates only to legal persons (private or public) based in Brazil.

AFFECTED COUNTRIES

MAP
TABLE
EXPORT

AFFECTED SECTORS AND PRODUCTS

411 Basic iron & steel
7207 Semifinished products of iron or nonalloy steel.
720720 Containing by weight 0.25 % or more of carbon
7218 Stainless steel in ingots or other primary forms; semifinished products of stainless steel.
721899 Other

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