The domestic industry also filed a countervailing duty petition alleging that significant subsidies have been provided to Chinese GOES producers by the Chinese Government. The petitions were filed concurrently with the United States Department of Commerce and the United States International Trade Commission (USITC). The seven countries covered by the antidumping petitions and the margins alleged by the domestic industry are as follows:

Country	Dumping Margins Alleged
China	168.47%
Czch Republic	57.55–217.23%
Germany	49.51–188.59%
Japan	38.26–171.25%
Poland	47.81–94.85%
Russia	18.54–81.78%
South Korea	40.45–201.13%

 
The petitions were filed in response to large and increasing volumes of low-priced imports of GOES from the subject countries over the past three years that have injured U.S. GOES producers. Imports from the seven subject countries accounted for 85% of all imports of GOES by value in the U.S. market in 2012. The petitions allege that producers in the subject countries have injured the domestic industry by selling their products at unfairly low prices that significantly undercut domestic market prices. As a result of this unfair competition, the domestic industry has suffered declines in production, sales, and employment, has watched prices decline even in the face of increased costs, and has seen its profitability evaporate. Foreign producers in the countries covered by the petitions have massive capacity to produce GOES, and have been exporting large and increasing volumes of unfairly low-priced and subsidized GOES to the United States that has devastated pricing in the U.S. market. Those price declines are likely to continue to the detriment of competing U.S. producers if duties are not imposed to level the playing field.

“We filed these cases seeking the restoration of fair competition in the U.S. market for grain-oriented electrical steel. Our extensive investigations confirmed our belief that widespread dumping is being practiced by producers from seven countries. This violates U.S. laws and WTO rules. We respectfully urge the U.S. Department of Commerce and the U.S. International Trade Commission to grant speedy and effective relief to remedy the injury to our business and to support the jobs of our employees,” said Richard J. Harshman, the chairman, president, and chief executive officer of Allegheny Technologies Inc., the parent company of petitioner ATI Allegheny Ludlum.

James L. Wainscott, chairman, president, and chief executive officer of AK Steel stated, “AK Steel expects all of its competitors to operate according to the rules of fair trade, and is filing these cases to address the pervasive dumping of GOES into the United States by several foreign steelmakers. The substantial antidumping margins found in our investigations reflect the determination of those companies to capture market share in the United States by using tactics not permitted under U.S. and international rules.”

The USW also supports the petitions. Leo W. Gerard, the international president of the USW stated, “The United Steelworkers are pleased to join with ATI Allegheny Ludlum, whose workers the USW represents, and AK Steel in filing these important cases. Our union has long been in the forefront of fighting job-killing unfair trade practices like the massive dumping demonstrated in our petitions. We hope and expect that these cases will restore lost jobs for our members and fair competition in the U.S. market.”

“Imports of unfairly low-priced and subsidized GOES from the seven countries covered by the petitions have devastated pricing in the U.S. market and caused injury to the domestic industry,” commented David Hartquist, of Kelley Drye & Warren LLP, the petitioners’ trade counsel. “The domestic industry looks forward to the opportunity to present its case to the Commerce Department and U.S. International Trade Commission to obtain relief from unfairly traded imports of GOES.”
Antidumping duties are intended to offset the amount by which a product is sold at less than fair value, or “dumped”, in the United States. The margin of dumping is calculated by the Commerce Department. Estimated duties in the amount of the dumping are collected from importers at the time of importation. Countervailing duties are intended to offset unfair subsidies that are provided by foreign governments and benefit the production of a particular good. The USITC, an independent agency, will determine whether such imports are a cause of, or threaten, material injury to the domestic industry.

As a result of the filing of the petitions, the Commerce Department will determine whether to initiate the antidumping and countervailing duty investigations within 20 days and the USITC will reach a preliminary determination of material injury or threat of material injury within 45 days. The entire investigative process will take approximately one year, with final determinations of dumping, subsidization, and injury likely occurring in the fall of 2014.

GOES is an alloy steel that contains by weight at least 0.6% of silicon and not more than 0.08% of carbon, and may also contain no more than 1% of aluminum by weight. The petitions cover GOES that is sold in either sheet or strip form, in coils or in straight lengths. GOES is manufactured using a specialized rolling and annealing process that yields grain structures uniformly oriented in the rolling (or lengthwise) direction of the sheet, enabling it to conduct a magnetic field with a high degree of efficiency. Based on these unique product characteristics, GOES is used primarily in the production of laminated cores for large and medium-sized electrical power transformers and distribution transformers.

The petitioners are represented in these actions by David A. Hartquist and John M. Herrmann of the law firm Kelley Drye & Warren LLP.