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Two New U.S. Anti-dumping/Countervailing Cases Against China
by Alex Lu
In June, two new anti-dumping/countervailing compliants were raised by US joint industries to USDOC and USITC: one on the off-the-road (OTR) tires, and one on the steel pipes, both involving United Steelworkers (USW). The latter case may well be of the largest scale in US-China trade disputes. The USDOC and USITC's rulings are still not available yet, but as the end of July comes closer, China may have to face the devil.
USW Joins Titan Tire in Trade Case Against China Imports
Washington, D.C. (Jun.19) - - The United Steelworkers (USW) has joined Titan Tire Corp. as a co-petitioner in a trade case petition filed yesterday with the U.S. Department of Commerce and the U.S. International Trade Commission, citing China imports of off-the-road (OTR) tires as being dumped and subsidized.
The USW and Titan Tire seek to have the government impose duties to off-set unfair Chinese imports of off highway tires produced for use on vehicles and equipment in agricultural construction and industrial applications. According to the petition, China imports have increased from 11.2 million tires worth $166.35 million in 2004 to nearly 15 million tires worth $374.25 million in 2006.
China is the single largest source of imports of OTR tires, accounting for more than 83 percent of total imports by volume in 2006.
USW President Leo W. Gerard said, “We are seeing the predatory policies of China chopping away at our domestic tire manufacturing industry. It’s urgent that we fight for aggressive enforcement of our nation’s trade laws before it’s too late and we see more family-supportive jobs lost to China subsidization and unfair dumping.”
China imports are significantly underselling U.S. produced OTR tires. Based on a comparison of Chinese and U.S. prices in the petition, the underselling averaged 29 percent. A second comparison shows underselling margins ranging from two to 30 percent. U.S. producers such as co-petitioner Titan Tire have lost significant sales and revenue to such low-priced imports.
Steve Vanderheyden, USW Local 745 President representing workers employed at Titan Tire’s plant in Freeport, IL, said: “We’ve seen how difficult it is to compete with tire imports subsidized by China. The impact on our job security and communities require a more level playing field.”
The USW estimates it represents 70 percent of the domestic OTR tire makers with workers employed at Titan production plants employing about 1,355 workers in Des Moines, IA; Freeport, IL; and Bryan, OH; plus a total of about 4,215 employed at tire plants of Bridgestone-Firestone in Des Moines and Bloomington, IL; Denman Tire in Leavittsburg, OH; and Goodyear Tire and Rubber in Topeka, and Buffalo.
Under the antidumping and countervailing duty statutes, the Commerce Department will determine whether to initiate an investigation in 20 days. The Trade Commission will make a preliminary injury determination by the beginning of August 2007. Commerce could issue preliminary determinations in the countervailing duty and antidumping duty cases in early November 2007, but such deadlines are subject to extensions.
Steel Pipe Case Filed Against China
June 7, 2007
PR Newswire
Washington, D.C. - Six U.S. producers of welded standard steel pipe and the United Steelworkers (USW) filed petitions with the U.S. Department of Commerce and the U.S. International Trade Commission alleging that imports of welded standard pipe from China into the United States are being dumped and are being subsidized by the government of China.
The industry seeks to have the agencies impose duties to off-set Chinese government subsidization and dumping. Chinese imports of circular standard and structural pipe have increased from 10,000 tons in 2002 to 690,000 tons in 2006, a 6,800% increase. Since the unfair trade began four U. S. plants (out of 35) have ceased production and over 500 employees have lost their jobs. And the surge continues, with a 21% rise in imports in the first quarter of 2007. Imports of standard pipe from China represent over 60% of total U. S. imports of such products.
The petitioners in this case are Allied Tube & Conduit; IPSCO Tubulars, Inc.; Northwest Pipe Company; Sharon Tube Company; Western Tube & Conduit Corporation; and Wheatland Tube Company, as well as the United Steelworkers.
Armand Lauzon, CEO of John Maneely Company (parent company of petitioners Wheatland Tube and Sharon Tube), said, “For the past 15 months, we have been working hard to bring more consolidation to the pipe and tube industry in the United States and to further improve its worldwide competitiveness. Unfortunately, in May 2006, we were forced to close our second largest production facility located in Sharon, Pennsylvania with the loss of several hundred jobs because of the surge of unfairly traded imports from China. Unfair Chinese trade practices are severely hampering our efforts to achieve the desired rates of return necessary to attract capital and to maintain competitiveness in this critical U. S. industry.”
About the Unfair Trade Practices and Their Impact on U.S. Producers
The unfair Chinese trade practices documented in the filing include sales at less than fair value and subsidies to the Chinese industry. The alleged margins of dumping range as high as 88 percent. The subsidies documented include policy loans, land use programs, tax subsidies, input material subsidies, grants, and export tax subsidies. The petition also addresses an export subsidy nominally known as a value added tax (“VAT”) rebate program. The petition alleges that this rebate is discretionary and excessive. The Government of China uses this particular program to provide an advantage to Chinese exports in global markets.
The Chinese steel industry has been nurtured and encouraged by the Chinese government for decades. Even so, as recently as 1990, Chinese steel production was still less than that of the United States, the European Union, or Japan. Today, Chinese steel production exceeds that of the United States, the European Union, and Japan combined. This magnitude of growth is the direct result of multiple subsidy policies and programs established and maintained by the Chinese government.
Rick Filetti, the President of Allied Tube & Conduit, said “Allied operates four of the most efficient pipe plants in the world geographically spread through the U.S. market in Philadelphia, Chicago, Phoenix and Pine Bluff, Arkansas, to serve the entire U.S. market in a freight beneficial manner. However, absent an end to dumping and a reduction in imports from China, we will be forced to make reductions at our plants despite very strong demand for our products. It would be a tragedy for the United States if the most efficient and environmentally compliant plants in the world were shut down and the United States nonresidential construction market became dependent on products imported from inefficient, environmentally noncompliant, high freight costs mills in China for this essential product to the U.S. economy. We are asking for the U.S. government to restore the level playing field and allow the rules of comparative advantage to hold sway.”
Filed in: China Trade Policy | Conference/Event Reports | WTO Disputes
June 21, 2007 - 10:09am
:usa:usa:usa:drinkup
by Alex Lu
In June, two new anti-dumping/countervailing compliants were raised by US joint industries to USDOC and USITC: one on the off-the-road (OTR) tires, and one on the steel pipes, both involving United Steelworkers (USW). The latter case may well be of the largest scale in US-China trade disputes. The USDOC and USITC's rulings are still not available yet, but as the end of July comes closer, China may have to face the devil.
USW Joins Titan Tire in Trade Case Against China Imports
Washington, D.C. (Jun.19) - - The United Steelworkers (USW) has joined Titan Tire Corp. as a co-petitioner in a trade case petition filed yesterday with the U.S. Department of Commerce and the U.S. International Trade Commission, citing China imports of off-the-road (OTR) tires as being dumped and subsidized.
The USW and Titan Tire seek to have the government impose duties to off-set unfair Chinese imports of off highway tires produced for use on vehicles and equipment in agricultural construction and industrial applications. According to the petition, China imports have increased from 11.2 million tires worth $166.35 million in 2004 to nearly 15 million tires worth $374.25 million in 2006.
China is the single largest source of imports of OTR tires, accounting for more than 83 percent of total imports by volume in 2006.
USW President Leo W. Gerard said, “We are seeing the predatory policies of China chopping away at our domestic tire manufacturing industry. It’s urgent that we fight for aggressive enforcement of our nation’s trade laws before it’s too late and we see more family-supportive jobs lost to China subsidization and unfair dumping.”
China imports are significantly underselling U.S. produced OTR tires. Based on a comparison of Chinese and U.S. prices in the petition, the underselling averaged 29 percent. A second comparison shows underselling margins ranging from two to 30 percent. U.S. producers such as co-petitioner Titan Tire have lost significant sales and revenue to such low-priced imports.
Steve Vanderheyden, USW Local 745 President representing workers employed at Titan Tire’s plant in Freeport, IL, said: “We’ve seen how difficult it is to compete with tire imports subsidized by China. The impact on our job security and communities require a more level playing field.”
The USW estimates it represents 70 percent of the domestic OTR tire makers with workers employed at Titan production plants employing about 1,355 workers in Des Moines, IA; Freeport, IL; and Bryan, OH; plus a total of about 4,215 employed at tire plants of Bridgestone-Firestone in Des Moines and Bloomington, IL; Denman Tire in Leavittsburg, OH; and Goodyear Tire and Rubber in Topeka, and Buffalo.
Under the antidumping and countervailing duty statutes, the Commerce Department will determine whether to initiate an investigation in 20 days. The Trade Commission will make a preliminary injury determination by the beginning of August 2007. Commerce could issue preliminary determinations in the countervailing duty and antidumping duty cases in early November 2007, but such deadlines are subject to extensions.
Steel Pipe Case Filed Against China
June 7, 2007
PR Newswire
Washington, D.C. - Six U.S. producers of welded standard steel pipe and the United Steelworkers (USW) filed petitions with the U.S. Department of Commerce and the U.S. International Trade Commission alleging that imports of welded standard pipe from China into the United States are being dumped and are being subsidized by the government of China.
The industry seeks to have the agencies impose duties to off-set Chinese government subsidization and dumping. Chinese imports of circular standard and structural pipe have increased from 10,000 tons in 2002 to 690,000 tons in 2006, a 6,800% increase. Since the unfair trade began four U. S. plants (out of 35) have ceased production and over 500 employees have lost their jobs. And the surge continues, with a 21% rise in imports in the first quarter of 2007. Imports of standard pipe from China represent over 60% of total U. S. imports of such products.
The petitioners in this case are Allied Tube & Conduit; IPSCO Tubulars, Inc.; Northwest Pipe Company; Sharon Tube Company; Western Tube & Conduit Corporation; and Wheatland Tube Company, as well as the United Steelworkers.
Armand Lauzon, CEO of John Maneely Company (parent company of petitioners Wheatland Tube and Sharon Tube), said, “For the past 15 months, we have been working hard to bring more consolidation to the pipe and tube industry in the United States and to further improve its worldwide competitiveness. Unfortunately, in May 2006, we were forced to close our second largest production facility located in Sharon, Pennsylvania with the loss of several hundred jobs because of the surge of unfairly traded imports from China. Unfair Chinese trade practices are severely hampering our efforts to achieve the desired rates of return necessary to attract capital and to maintain competitiveness in this critical U. S. industry.”
About the Unfair Trade Practices and Their Impact on U.S. Producers
The unfair Chinese trade practices documented in the filing include sales at less than fair value and subsidies to the Chinese industry. The alleged margins of dumping range as high as 88 percent. The subsidies documented include policy loans, land use programs, tax subsidies, input material subsidies, grants, and export tax subsidies. The petition also addresses an export subsidy nominally known as a value added tax (“VAT”) rebate program. The petition alleges that this rebate is discretionary and excessive. The Government of China uses this particular program to provide an advantage to Chinese exports in global markets.
The Chinese steel industry has been nurtured and encouraged by the Chinese government for decades. Even so, as recently as 1990, Chinese steel production was still less than that of the United States, the European Union, or Japan. Today, Chinese steel production exceeds that of the United States, the European Union, and Japan combined. This magnitude of growth is the direct result of multiple subsidy policies and programs established and maintained by the Chinese government.
Rick Filetti, the President of Allied Tube & Conduit, said “Allied operates four of the most efficient pipe plants in the world geographically spread through the U.S. market in Philadelphia, Chicago, Phoenix and Pine Bluff, Arkansas, to serve the entire U.S. market in a freight beneficial manner. However, absent an end to dumping and a reduction in imports from China, we will be forced to make reductions at our plants despite very strong demand for our products. It would be a tragedy for the United States if the most efficient and environmentally compliant plants in the world were shut down and the United States nonresidential construction market became dependent on products imported from inefficient, environmentally noncompliant, high freight costs mills in China for this essential product to the U.S. economy. We are asking for the U.S. government to restore the level playing field and allow the rules of comparative advantage to hold sway.”
Filed in: China Trade Policy | Conference/Event Reports | WTO Disputes
June 21, 2007 - 10:09am
:usa:usa:usa:drinkup
