Producers, Buyers Ask U.S. Trade Commission to Quash U.S. Steel Complaint
05/15/2016 - China’s second-largest steelmaker – and some U.S. buyers – have told the U.S. International Trade Commission that it should reject United States Steel Corporation’s petition to bar imports of Chinese-made steel from entering the country, according to reports.
“Never before has a single company sought to use this agency to erect what would be a total blockade of steel trade from an entire country,” Baosteel's American unit wrote in a filing with the trade commission, according to BloombergBusiness.
U. S. Steel last month filed a Section 337 petition with the commission, contending that the largest of Chinese steel producers and distributors have conspired to fix prices, stole trade secrets and circumvented duties through false labeling.
Although Section 337 investigations usually involve allegations of patent or trademark infringement, they can pertain to unfair trade practices that could substantially injure or destroy a domestic industry.
In this case, U. S. Steel says hackers, who were likely state-sponsored, stole research data that was later shared with competing Chinese steelmakers, helping them to commercialize ultrahigh-strength auto steels.
The commission has until the end of May to decide whether to initiate an investigation. In the meantime, it has been hearing from steel producers, steel users, labor representatives and lawmakers, all who have been urging it to either open an investigation or reject the petition.
U. S. Steel has asked its suppliers to support the case, but some buyers would rather see the case closed, the Pittsburgh Post-Gazette reported.
For example, Ball Metal Food Container of Westminster, Colo., told the commission that banning Chinese steel imports would lead to short supplies, higher prices and fewer alternatives, the Post-Gazette said.
The United Steelworkers union has said it supports the petition as has U.S. Sen. Bob Casey.
Elsewhere in the world, the European Commission has initiated an inquiry into subsidy programs for Chinese steelmakers, reports The Guardian newspaper.
According to The Guardian, the inquiry follows a complaint from the European Steel Association, which says Chinese producers are unfairly given preferential lending rates and low energy charges. In turn, the subsidies have allowed them to set export prices undercutting European producers, the association said.
U. S. Steel last month filed a Section 337 petition with the commission, contending that the largest of Chinese steel producers and distributors have conspired to fix prices, stole trade secrets and circumvented duties through false labeling.
Although Section 337 investigations usually involve allegations of patent or trademark infringement, they can pertain to unfair trade practices that could substantially injure or destroy a domestic industry.
In this case, U. S. Steel says hackers, who were likely state-sponsored, stole research data that was later shared with competing Chinese steelmakers, helping them to commercialize ultrahigh-strength auto steels.
The commission has until the end of May to decide whether to initiate an investigation. In the meantime, it has been hearing from steel producers, steel users, labor representatives and lawmakers, all who have been urging it to either open an investigation or reject the petition.
U. S. Steel has asked its suppliers to support the case, but some buyers would rather see the case closed, the Pittsburgh Post-Gazette reported.
For example, Ball Metal Food Container of Westminster, Colo., told the commission that banning Chinese steel imports would lead to short supplies, higher prices and fewer alternatives, the Post-Gazette said.
The United Steelworkers union has said it supports the petition as has U.S. Sen. Bob Casey.
Elsewhere in the world, the European Commission has initiated an inquiry into subsidy programs for Chinese steelmakers, reports The Guardian newspaper.
According to The Guardian, the inquiry follows a complaint from the European Steel Association, which says Chinese producers are unfairly given preferential lending rates and low energy charges. In turn, the subsidies have allowed them to set export prices undercutting European producers, the association said.
