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AISI, USW Support ITC Finding on Subsidized Steel Pipe from China
12/31/2009 - The American Iron and Steel Institute and the United Steelworkers both strongly support the U.S. International Trade Commission’s final injury determination in the countervailing duty portion of a case involving dumped and subsidized Chinese OCTG imports into the U.S. market.
The American Iron and Steel Institute (AISI) has issued a statement in support of the U.S. International Trade Commission’s (ITC’s) final injury determination in the countervailing duty portion of a case involving dumped and subsidized Chinese oil country tubular goods (OCTG) imports into the U.S. market.
“AISI strongly supports the U.S. International Trade Commission’s unanimous ruling today in favor of U.S. steelmakers, who have been clearly injured by high levels of unfairly traded oil country tubular goods into the U.S. market, beginning in 2006 and continuing through the first half of 2009,” said Thomas J. Gibson, President and CEO of AISI. “This affirmative ITC final injury decision in the subsidy part of the OCTG case is an important step toward allowing our competitive domestic OCTG producers to compete on a level playing field unhindered by unfair and injurious Chinese trade practices.
“At a time when the nation is struggling with double-digit unemployment, full and strict enforcement of our laws against dumped and subsidized imports of steel and other manufactured products from China is essential to maintaining a viable U.S. manufacturing sector in the United States,” Gibson concluded.
The United Steelworkers (USW) also reacted positively to the affirmative 6-0 vote by the ITC.
"[The] vote by the trade commission makes it clear to American pipe workers and industry that the U.S. government will stand up against China's violation of fair trade rules when domestic job losses and industry injury are clearly demonstrated," said USW International President Leo W. Gerard.
He noted that the future of 6000 workers employed by eight OCTG pipe producers and their communities are at stake in an industry segment where nearly half of the domestic workforce has been laid off at different times since the case was jointly filed in April by the USW and the participating companies. The pipe imports case is the largest in U.S. history with imports valued at $2.6 billion in 2008.
According to the USW's trade counsel, Roger B. Schagrin of Schagrin Associates in Washington, the level of countervailing duties to offset Chinese government subsidies to be imposed in mid-January range from 10.5 to 16%. The antidumping portion of the pending trade case against OCTG imports from China will be decided on April 1, 2010. Preliminary antidumping duties of 96% are currently pending against all but one of the Chinese exporters.
Gerard testified before the trade commission on December 1 at the final injury hearing, saying that the domestic OCTG pipe producers lost 2421 workers between the end of 2008 and September 2009.
The eight producers on the OCTG petition are U.S. Steel Corp., Maverick Tube Corp., Evraz Rocky Mountain Steel, Northwest Pipe, TMK IPSCO, V&M Star, LLP, V&M TCA, and Wheatland Tube Corp.
USW International Vice President Tom Conway said that this case against China will impact jobs in the entire supply chain for OCTG pipe, including those making flat rolled steel, producing coke, and mining iron ore.
"This unfair and illegal trade already has cost thousands of jobs, and thousands more are at stake," Conway said. "It's little wonder so many elected legislative and executive officials are making their voices heard on this important matter."
Members of both congressional houses signed onto letters to ITC Chairman Shara L. Aranoff supporting the USW and other petitioners' position, including 47 members of the House and 13 senators.
