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US to impose duties on imported Chinese steel pipes
AFP - 1 hour 54 minutes ago
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US to impose duties on imported Chinese steel pipes
WASHINGTON (AFP) - – The United States will slap penalty duties on imported Chinese steel pipes targeted for unfair subsidies, officials said Wednesday, heightening trade tensions between the two powers.
The US International Trade Commission (ITC) said it had made a "final" decision Wednesday that the subsidized pipes adversely impacted the domestic steel industry, paving the way for the Commerce Department to impose countervailing duties of up to nearly 16 percent on the pipes.
This is the largest countervailing duty case filed against China, based on the value of trade, lawyers said.
Beijing had "strongly" opposed the unfair subsidy claims investigated by Washington since early 2009, calling them "blind accusations."
From 2006 to 2008, imports of such Chinese pipes increased by a massive 203 percent. They were valued at 2.6 billion dollars last year.
The ITC, an independent federal agency determining import injury to US industries, said in a statement that it "has made an affirmative determination in its final-phase countervailing duty investigation concerning" the "oil country tubular goods" from China.
The pipes are used to deliver oil and gas in the petroleum industry.
The ITC will forward in writing the formal determination to the Commerce Department "within 10 days," an official told AFP, speaking on condition of anonymity.
"This is the final piece in the puzzle," the official said.
The Commerce Department last month cited countervailing duties of between 10.36 percent and 15.78 percent to be imposed on the steel pipes if the ITC decided that the US steel industry had been "injured" by the allegedly unfair subsidies. The duties will be in addition to normal tariffs.
The ITC ruling came amid rising trade tensions between the United States and China.
In September, the United States announced it would slap duties on Chinese-made tires to protect local US industry, sparking the first major trade dispute under Barack Obama's presidency.
An angry Beijing lodged a complaint at the World Trade Organization and retaliated by launching a probe into possible unfair trade practices involving imports of US car products and chicken meat.
Beijing charged that Washington's move violated WTO rules but Obama has denied that it amounted to protectionism.
The Commerce Department pursued an investigation into the steel pipes case after complaints from various US industry groups, including the United States Steel Corporation, and the United Steel, Paper and Forestry, Rubber, Manufacturing, Energy, Allied Industrial and Service Workers International Union.
The steel pipes are also being investigated in a separate case for dumping, in which Washington alleges the Chinese imports are being sold at below market value. China also has called that move protectionist.
In November, the Commerce Department in a "preliminary determination" said anti-dumping duties of up to 99 percent would be slapped on the pipes, saying they were sold in the United States at prices ranging from as much as 99.14 percent below normal value.
The department said it would make a "final determination" on the dumping case in March.
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