US Initiates More Trade Disputes With India and Others

Secretary of Commerce Wilbur Ross at the White House daily press briefing last year

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Washington, DC – The United States today (Feb. 13) announced more trade related investigations into pipes dumping allegations against some countries including India and cases of unfair subsidies according to the US Department of Commerce.

Announcing the initiation of new antidumping duty (AD) and countervailing duty (CVD) investigations, US Secretary of Commerce Wilbur Ross noted that the action was to  to determine whether imports of large diameter welded pipe from Canada, China, Greece, India, Korea, and Turkey are being dumped in the United States and/or if producers are receiving unfair subsidies.

“With an 81 percent increase in trade cases initiated since President Trump took office, this Administration has made it clear that we will vigorously administer antidumping and countervailing duty laws,” said Secretary Ross.

From January 20, 2017, through February 9, 2018, the Commerce Department has initiated 94 antidumping and countervailing duty investigations – an 81 percent increase from the previous period.

“When initiating a trade investigation, the Department of Commerce begins an open and transparent process that allows American companies and workers to gain relief from the market-distorting effects of injurious dumping and subsidization of imports,” explained Ross.

In the AD investigations, the Commerce Department will determine whether imports of large diameter welded pipe from Canada, Greece, China, India, Korea, and/or Turkey are being dumped in the US market at less than fair value.

In the CVD investigations, the Commerce Department will determine whether imports of large diameter welded pipe from China, India, Korea, and/or Turkey are receiving government subsidies.

According to the Commerce Department, the investigations were initiated based on petitions filed by American Cast Iron Pipe Company (Birmingham, AL), Berg Steel Pipe Corp. (Panama City, FL), Dura-Bond Industries (Steelton, PA), Skyline Steel (Parsippany, NJ), and Stupp Corporation (Baton Rouge, LA).

The estimated dumping margins alleged by the petitioners are 50.89 percent for Canada, 41.04 percent for Greece, 120.84 to 132.63 percent for China, 37.94 percent for India, 16.18 to 20.39 percent for Korea, and 66.09 percent for Turkey. The unfair subsidy programs alleged include export subsidies, inputs for less-than-adequate-remuneration, tax incentives, and subsidized loans from China, India, Korea, and Turkey.

Next Steps

In addition to the Commerce Department investigations, the US International Trade Commission (ITC) will conduct its own investigations into whether the US industry and its workforce are being harmed by such imports. The ITC will make its preliminary determinations on or before March 5, 2018.

If the ITC preliminarily determines that there is injury or threat of injury, then the Commerce Department investigations will continue, with preliminary CVD determinations scheduled for April 16, 2018, and preliminary AD determinations scheduled for June 29, 2018, unless these deadlines are extended.

If the Commerce Department preliminarily determines that dumping and/or unfair subsidization is occurring, then it will instruct US Customs and Border Protection to start collecting cash deposits from all US companies importing large diameter welded pipe from these countries.

Final determinations by the Commerce Department in these cases are scheduled for July 2, 2018, for the CVD investigations, and September 12, 2018, for the AD investigations, but those dates may be extended.

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