A US trade panel on Friday approved the eighth government investigation this year into charges of unfair Chinese pricing practices in a case in which US companies want a nearly 100 percent duty or more on $382 million of imported steel pipes.
The US International Trade Commission voted 6-0 to allow the Commerce Department to continue to investigate charges that Chinese steel pipe producers receive government subsidies and sell at unfairly low prices in the United States. The panel said it approved the investigation because there was a reasonable indication the imports could harm US producers.
The ITC vote came one day after Chinese Commerce Minister Chen Deming said US Commerce Secretary Gary Locke and US Trade Representative Ron Kirk committed in annual high-level talks to "avoid abusing trade protection measures." A US spokeswoman said that did not mean Washington promised not to accept new petitions asking for duties or other restrictions on imports from China.
President Barack Obama angered China last month by imposing a 35 percent duty on Chinese-made tires in response to a petition from the Steelworkers union, which also represents workers at many US tire plants. That particular case did not involve charges of unfair pricing. Instead, Obama imposed the duties in response to what the ITC said was a market-disrupting surge.
The trade panel will vote next Friday on three more investigations into Chinese pricing practices, in separate cases on coated paper for high-quality print graphics, steel fasteners and sodium and potassium phosphate salts. So far in 2009, the ITC has approved final anti-dumping or countervailing duties on nine Chinese products.
Those include mattress innersprings, small diameter graphite electrodes, welded stainless steel pipe, steel threaded rod, frontseating service valves, circular welded carbon quality steel line pipe, critic acid, tow-behind lawn groomers and kitchen appliance shelving and racks. The investigation approved on Friday covers seamless carbon and alloy steel standard, line and pressure pipe used in industrial piping systems to convey water, steam, oil products, natural gas and other liquids and gases.
Imports of the product from China increased nearly 132 percent by volume from 2006 to 2008 to an estimated $382 million, the Commerce Department said earlier this month when it accepted a petition brought by US Steel, V&M Star LP, TMK IPSCO and the United Steelworkers. The companies and union have requested a 98.37 percent anti-dumping duty to offset what they allege to be unfairly low prices for Chinese-made steel pipe sold in the United States.
They also want additional countervailing duties to offset suspected Chinese government subsidies. The Commerce Department is expected to make its preliminary decision on countervailing duties in December and on antidumping duties in February. The ITC has to make a final determination next year that US producers are hurt or threatened with injury by the imports for duties to become final.
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