The World Trade Organization (WTO) has recently declared the EU’s 85% anti-dumping tax on screws and fasteners exports from China illegal. The end of the EU anti-dumping tax could harm Taiwan’s screw exports, valued at more than US$4.2 billion annually.
Exports of Taiwan’s low grade screws are likely to feel the strongest impact. Exports of medium to high grade screws are unlikely to suffer as badly. Taiwan’s Industrial Development Bureau said Thursday that it has already drawn up measures to help manufacturers cope with increased competition from China.
Strategies include importing more of the raw materials for low grade screws from China. The bureau is also considering asking China Steel to lower the price of raw materials that go into making Taiwan’s medium to high grade screws.