USW Praises Antidumping Duties on Coated Steel

CONTACT: Gary Hubbard; (202) 256-8125; ghubbard@usw.org

Pittsburgh (Dec. 23) – The United Steelworkers (USW) confirmed another preliminary determination announced late Tuesday by the U.S. Department of Commerce (USDOC) following antidumping (AD) duty investigations for imports of corrosion-resistant steel products from China, India, Italy and Korea.

“The egregious high volume of illegal, corrosion-resistant steel dumped in the U.S. market from China was found to be so substantial that all producers in China will have a maximum duty rate that should take them out of our market,” said USW International President Leo W. Gerard.

According to the government’s determination, the rate applied to China imports will be 255.80 percent. The remaining countries in the trade case investigation will have single-digit AD margins on corrosion-resistant imports: India (6.64-6.92 percent); Korea (2.99-3.51 percent); and Italy (0.0-3.11 percent). Taiwan received no antidumping margin whatsoever.

“We are gratified the whopping duty on China dumping will be another needed lesson for their job-stealing violations.” He added that this Commerce Dept. prelim finding is the second enforcement action in the past week against illegal imports of flat-rolled steel products that follows subsidy duties placed on cold-rolled imports from China,” Gerard said.

Other steel trade cases in the U.S. government pipeline are due for investigative outcomes on dumping for hot-rolled in January and cold-rolled in February.

“Multiple steel producing countries are taking more than one-third of our domestic market when American steelworkers should be sharing in an improved economy.” Gerard declared.

“Instead, thousands of USW-represented steelworkers and iron ore miners are currently on layoff status at American idled facilities. Tens of thousands more are threatened by the steel imports tonnage still flooding into the country – especially from China.”

The preliminary order announced late yesterday on coated steel products will result in the U.S. Customs and Border Protection (CBP) being instructed to require cash deposits based on the duty rates for steel imports from China and three other countries.

Tom Conway, USW International Vice President, who is currently leading negotiations with several domestic steel companies, said: “The duty rates will also be applied retroactively by the USDOC, where ‘critical circumstance’ was found for certain exporters from China, Korea and Taiwan.”

The export violators will be required by U.S. Customs to impose provisional measures retroactively on steel flat products for up to 90 days prior to the effective date of the federal order.

Global overcapacity in steel and continued abuse of the system by foreign companies and their governments requires a major overhaul of U.S. trade policy and enforcement, said Conway.

“For decades, American workers have paid the price of failed trade policies and inconsistent enforcement of flawed trade agreements,” he added. “Congress and the administration need to take responsibility for changing the system that has cost more than a million manufacturing jobs and shuttered thousands of factories, mainly in industries that employ USW members.”

The USW represents some 35,000 workers who produce corrosion-resistant steel at facilities owned by U.S. Steel, ArcelorMittal and AK Steel, which are among the petitioners seeking relief. The U.S. trade case was filed in June.

Impacted U.S. Steel facilities include operations in Clairton, Pa., Fairfield, Ala., and Gary, Ind. ArcelorMittal production incudes operations in Cleveland, Ohio, East Chicago, Ind., and Weirton, W Va., while affected AK Steel plants include operations in Ashland, Ky. and Mansfield, Ohio.

Final determination orders for corrosion-resistant steel are due next May by the USDOC and in June from the U.S. International Trade Commission (USITC). Corrosion-resistant steel products are typically used in the manufacture of trucks, automobiles, appliances, agricultural equipment and industrial equipment.

The USW represents 850,000 workers in North America employed in many industries that include metals, rubber, chemicals, paper, oil refining and the service and public sectors. For more information: http://www.usw.org/.

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