Steel Companies from India, China Receiving Huge Government Subsidies: US

US Secretary of Commerce Wilbur Ross

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Washington, DC – The US Department of Commerce today (Jan. 17) released the preliminary results of its countervailing duty (CVD) investigations into the exporters of steel flanges from China and India, finding both the countries pumped subsidies into their respective companies.

US Secretary of Commerce Wilbur Ross announced the “affirmative preliminary determinations in the CVD investigations of stainless steel flanges from the People’s Republic of China (China) and India,” concluding that exporters in “China and India received countervailable subsidies of 174.73 percent, and from 5.00 to 239.61 percent, respectively.”

“With a 58 percent increase in trade cases initiated since President Trump took office, this Administration has made it a clear priority to defend domestic businesses from unfair trade practices,” cautioned Secretary Ross.

Commenting on the latest action, Ross said, “Today’s preliminary decision allows US producers to receive relief from the market-distorting effects of potential government subsidies while we continue our investigation.”

The US Commerce Department, in a statement noted its intentions to “instruct US Customs and Border Protection to collect cash deposits from importers of stainless steel flanges from China and India based on these preliminary rates.”

In 2016, imports of stainless steel flanges from China and India were valued at an estimated $16.3 million and $32.1 million, respectively.

The petitioners are the Coalition of American Flange Producers and its individual members: Core Pipe Products, Inc. (Carol Stream, IL) and Maass Flange Corporation (Houston, TX) and on September 5, 2017, the Department of Commerce initiated its investigations.

CVD (countervailing duty) law provides US businesses and workers with an internationally accepted mechanism to seek relief from the harmful effects of unfair subsidization of imports into the United States. The department is currently scheduled to announce its final CVD determinations on April 3, 2018, and May 29, 2018, for China and India, respectively.

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