ITC to China: “Pipe Down.”
Posted by SCapozzola on June 25th, 2008ITC to China: “Pipe Down.”
Last Friday, the U.S. International Trade Commission (ITC) determined that domestic steel pipe makers are being harmed by competition from China. ManufactureThis is glad to see that the ITC recognizes what we’ve been saying—namely, that China unfairly subsidizes and dumps products in order to gain a decided advantage over U.S. producers.
The ITC decision, which came after a 5-0 vote, marks the first time the U.S. will impose duties to compensate for tax breaks and other government subsidies to Chinese competitors.
What’s important to note is that the U.S. has trade laws on the books that are meant to address unfair and illegal trade practices. Utilizing these laws can help steer countries toward competing fairly, and thus preserving an open, free market.
AAM field coordinator Mickey Bolt, who oversees AAM Action outreach throughout Pennsylvania, is a former employee of Wheatland Tube, a company that had been hard-hit by subsidized competition from China. Mickey was particularly pleased by the ITC decision and noted that “finished Chinese steel pipe is sold in this country at a lower cost than the raw material costs for the American manufactures.”
Specifically, Mickey cited large subsidies on the part of the Chinese government that “allow their manufacturers to ship products here and sell them cheaper than an American manufacturer’s raw material cost.”
As Commerce Department data indicates, these subsidies have resulted in a nearly 7,000% increase in steel pipe imports from China since 2002.
As a Wheatland Tube employee, Mickey has seen the ground level results of this import competition and said that he hopes the ITC ruling will mean that “American steel pipe and tube manufacturers like my friends at Wheatland Tube and Sharon Tube will finally be able to compete against Chinese pipe producers and not the entire Chinese government.”
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