Steel sector expected to grow 9% in 2004

Venezuela's steel sector envisages growth of 9% in 2004 helped by the United States' decision to rescind tariffs on steel imports, according to Victor Alvarez, the country's chief delegate for the proposed Free Trade Area of the Americas (Alca). Two of Venezuela's most important steel companies Sidor y Sivensa, which were hit hard by the tariffs, will benefit from the US decision on December 4 to officially end the safeguards, said Alvarez, according to a report in Panorama Digital. "This was a long-awaited decision. When the United States decided to place the tariffs it was a hard blow to developing nations," he said. Alvarez said the US decision had been doubly tough as steel exporting nations had re-directed their exports from the United States to Venezuela causing an oversupply in the local market. The controversial quotas and tariffs on steel imports reached as high as 30% when they were imposed in March 2002, and were due to stay in place for three years.