US steel industry wins trade case against China
27/06/2008 12:00
The commission voted 5-0 that the
The ruling means penalty tariffs ranging from 99 percent to 701 percent will be imposed on Chinese imports of circular welded pipe, a form of pipe used in a variety of construction jobs, such as home plumbing and sprinkler systems.
For more than two decades, the
However, the Bush administration, facing increasing anger over soaring trade deficits with
The pipe case is the first to clear all the government hurdles for the tariffs to go into effect. Last year, the Commerce Department imposed penalty tariffs on imports of Chinese glossy paper, but the trade body blocked the tariffs by ruling that the domestic industry had not proven it was being materially harmed by the imports.
In the pipe case, the Commerce Department found the Chinese government was providing unfair subsidies. It also found that the pipe was being sold in this country below the cost of production, a practice known as dumping. The penalty tariffs for the government subsidies, known as countervailing duties, and the antidumping tariffs were upheld by the trade commission vote.
Chinese exports of circular pipe have exploded since 2002, rising from 10,000 tons that year to 750,000 tons in 2007. The
Plants making circular welded pipe, also known as standard pipe, are located in 13 states -- Alabama, Arizona, Arkansas, California, Illinois, Iowa, Kansas, Missouri, Ohio, Pennsylvania, Tennessee, Texas and Wisconsin.
The case before the government was filed by six pipe producers and the United Steelworkers union, whose president, Leo Gerard, called the commission ruling a major victory that should send a clear message to
"
Gil Kaplan, a lawyer representing the pipe companies, predicted the ruling could be the first of a wave of victories by
"This decision marks a fundamental turning point in the U.S.-China trade relationship," Kaplan said. "The subsidies that the Chinese are giving a whole host of their manufacturing industries are a big reason the
Wang Baodong, a spokesman for the Chinese embassy in
"The Chinese government will study the latest development carefully and take appropriate action," Wang said.
The companies bringing the pipe case were Allied Tube & Conduit, IPSCO Tubulars Inc., Northwest Pipe Co., Sharon Tube Co., Western Tube & Conduit Corp. and Wheatland Tube Co.
Reps. Phil English, R-Pa., and Jason Altmire, D-Pa., who are sponsoring legislation that would increase the power of Congress in similar trade cases, said it was disappointing that it had taken so long for the domestic companies and workers to win protection.
"There are other workers who are going to continue to face the risk of losing their jobs to Chinese mercantilism unless Congress looks at this issue and decides to strengthen
Since joining the World Trade Organization in 2001,
"There's no question that Chinese producers have engaged in unfair trade on a massive scale," said John Armstrong, a spokesman for U.S. Steel in
The circular welded pipe case is one of a number of cases that have already been filed accusing the Chinese of providing their manufacturers with unfair subsidies. Other cases involve different types of pipe as well as tires, lightweight thermal paper and laminated woven sacks.
The
By MARTIN CRUTSINGER
Associated Press
Source: www.gopusa.com
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