BRUSSELS, (Reuters) – The European Union is increasing tariffs on stainless-steel products imported from India and Indonesia. It has determined that they have benefited unfairly from subsidies including those from China as part of its Belt and Road investment program.

According to the EU journal, Wednesday’s investigation revealed that the European Commission has established anti-subsidy duty rates on flat stainless steel products cold-rolled at an average rate of 4.3% to 21.4%.

They will increase the existing anti-dumping duties.

The new tariff for Indonesia’s IRNC is 21.4%. This brings the total rate to 30.7%, which includes anti-dumping duties.

India’s Jindal Stainless Ltd & Jindal Stainless Hisar Ltd now have rates of 4.3% and 14.3% respectively.

According to the Commission subsidies were in the form of preferential loan, exemptions of duty and low provision of raw materials. This was partly due to restrictions on the export of those materials.

Also, Indonesia received subsidies from China to support its stainless-steel industry. This in turn was returned by Indonesia taking up a greater share of Indonesian nickel ore exports.

This investigation is the second by the European Union into Chinese subventions to transnational Chinese companies. Imposition of duties by the EU on Egypt’s glass fibre fabric and other products made from Chinese joint-ventures or companies in 2020

According to the Commission, new tariffs will be in effect starting Thursday and are intended to address damage to EU producers like Outokumpu and Acerinox.

Valdis Dombrovskis from the EU Trade Chief stated, “Today, we are taking actions to counter unfair state sponsored subsidies in India or Indonesia that directly affect our workers and companies within this vital industrial sector.”

Indonesia claimed that the EU investigation didn’t take into consideration the arguments and evidence presented by its government during the investigation.

This had been clearly proven, according to Natan Kambuno, director of the Trade Ministry.

He indicated that the government would cooperate with the company affected regarding duties.