US hits heavy penalties on Chinese pipe

Tag : carbon steel bolt


David Phelps, president of the American Institute for InternationalSteel Inc., a Washington trade group that represents foreign steelcompanies in the United States, could not be reached for comment.
The pipe case is the first to clear all the government hurdles forthe tariffs to go into effect. Last year, the Commerce Departmentimposed penalty tariffs on imports of Chinese glossy paper, but theITC blocked the tariffs by ruling that the domestic industry hadnot proven it was being materially harmed by the imports.
A coalition of seven pipe producers, including Sharon Tube Co. andWheatland Tube Co., along with the USW, claimed that the illegallytraded Chinese pipe had cost 500 jobs from 2005 to 2007, or 20percent of the work force, said Roger Schagrin, a Washingtonattorney who represented the USW in the case.
Such pipe is used for plumbing, heating and air conditioning,sprinkler systems and construction. Plants producing the pipe arelocated in 13 states -- Pennsylvania, Ohio, Illinois, Arkansas,Texas, Missouri, Alabama, Kansas, California, Wisconsin, Iowa,Tennessee and Arizona.
The surge in Chinese circular welded pipe imports, which jumpedfrom 10,000 tons in 2005 to 750,000 tons in 2007, cost U.S. pipeproducers about $150 million in profits, Schagrin said. That wasmoney that the U.S. producers lost and could not invest in newequipment and more workers, Gerard said.
For Michael Bolt, a union activist who has worked at Wheatland Tubefor 31 years, the fight was worth it, but came too late to save oneWheatland plant, which was torn down as a result of the loss ofmarket share.
"We were looking to save our jobs, our industry and ourcommunities," Bolt said.
The tariffs will add 99 percent to 700 percent to the price of thepipe. They will be placed on imports dating back to November.
The USW and the industry coalition will press forward on four othercases involving illegally traded Chinese pipe, including weldedstainless steel pipe, Schagrin said.
"China is like the playground bully. They agreed to abide by therules of the WTO (World Trade Organization) when they joined," butthey have violated the rules of fair trade, said Gary Hubbard, aUSW government affairs representative.
"This should be a lesson to members of the House and Senate that weneed a new trade policy," Gerard said. The union leader wasreferring to a 2005 case in which the Commerce Departmentdetermined China was dumping pipe at below-market costs, butPresident Bush rejected recommendations for duties.