ITC to Uphold Duties on Welded Line Pipe from Japan, Revoke Duties for Mexico
10/03/2007 - The U.S. International Trade Commission will uphold the existing antidumping duty order on imports of welded large diameter line pipe from Japan, but will revoke the existing order on imports of this product from Mexico.
The U.S. International Trade Commission (ITC) announced it will uphold the existing order on imports of welded large diameter line pipe from Japan, but will revoke the existing order on imports of this product from Mexico.
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The ITC’s decision to maintain antidumping duties on Japanese welded large-diameter line pipe (WLDLP) was sharply criticized by Hiroshi Adachi, Chairman of the U.S.-based Japan Steel Information Center.
“Welded large-diameter line pipe is used in the critical natural gas and oil pipeline infrastructure,” said Mr. Adachi. “Numerous reports, including data collected by the U.S. Department of Energy, show that the oil and gas pipeline market will grow strongly for the foreseeable future. This means that the market for welded large-diameter line pipe will be equally strong,” he added.
He further noted that “major U.S. pipeline companies testified and told the Commission of the tremendous lead times that welded large-diameter line pipe customers are now required to endure due to the lack of available capacity. There is simply not sufficient production of welded large-diameter line pipe in the United States, with some producers booked through 2008 and even well into 2009.”
“As can be expected in this booming market,” Mr. Adachi continued, “U.S. welded large-diameter line pipe producers have been doing extremely well. There are at least several additional welded large-diameter line pipe manufacturing plants on the books, some being planned by current U.S. producers themselves.”
Mr. Adachi concluded, “The World Trade Organization rules create a presumption that antidumping orders should normally expire after five years. We will examine the views of the ITC once they have been made available, but we believe that any rationale for continuing the duties cannot be supported by the facts.”
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With respect to Japan, Vice Chairman Shara L. Aranoff and Commissioners Charlotte R. Lane, Irving A. Williamson, and Dean A. Pinkert voted in the affirmative; Chairman Daniel R. Pearson and Commissioner Deanna Tanner Okun voted in the negative.
With respect to Mexico, Chairman Pearson, Vice Chairman Aranoff, and Commissioners Okun, Williamson, and Pinkert voted in the negative; Commissioner Lane voted in the affirmative.
This action comes under the five-year (sunset) review process required by the Uruguay Round Agreements Act. The Uruguay Round Agreements Act requires the Department of Commerce to revoke an antidumping or countervailing duty order, or terminate a suspension agreement, after five years unless the Department of Commerce and the ITC determine that revoking the order or terminating the suspension agreement would be likely to lead to continuation or recurrence of dumping or subsidies (Commerce) and of material injury (ITC) within a reasonably foreseeable time.
