BRASÍLIA: Brazil’s competition watchdog Cade has agreed to end administrative proceedings against local steel association IABr regarding claims the trade group abused its rights to request injunctions, the antitrust authority said in a statement.
IABr was being accused of trying to damage legally established steel rebar importers in the country. The proceedings were requested in 2011 by the national association of steel importers and steelmakers (Abrifa) based on claims that IABr filed 40 “sham litigation” suits against importers of steel rebar by questioning their conformity with local safety rules.
Due to the suits, rebar imports were blocked by customs pending investigation, causing additional costs to importers and preventing the movement of goods in the country, according to the Abrifa complaint.
Under the deal, IABr desists from all suits related to the matter, while association was ordered to pay a financial contribution of 271,000 reais (US$87,000), Cade said.
On January 18, IABr said domestic steel sales last year dropped 9.1% to 16.5Mt. Steel exports totaled 13.4Mt and generated US$5.6bn, down 2.1% and 15.0%, respectively. Meanwhile, imports slumped 41.4% to 1.9Mt and reached US$1.7bn, down 45.9%.
