US moves to place new duties on Chinese steel pipes
US moves to place new duties on Chinese steel pipes
08:32, December 31, 2009 
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The U.S. government has decided to impose new punitive tariffs on imports of steel pipes from China at the year end, in another protectionist move that is expected to be met with similar tit-for-tat measure from Beijing.
The case will affect about US$2.8 billion worth of Chinese imports, the Associated Press reported.
A group of U.S. steelmakers and the United Steelworkers union sought the duties in April, arguing that the Chinese steel industry was flooding the U.S. market with pipes sold at unfairly low prices. They also alleged that the Chinese companies benefited from government subsidies.
U.S. Steel, one of the eight companies that brought the complaint to the Obama administration, said in an e-mailed statement that it is "pleased" with the decision.
The U.S. International Trade Commission voted Wednesday to impose duties between 10.36 percent and 15.78 percent on the pipes, which are mostly used in the oil and gas industries. The ITC will decide in the spring whether to impose additional tariffs of up to 96 percent to penalize Chinese steelmakers.
Roger Schagrin, counsel for the United Steelworkers and five steel manufacturers, said the decision could enable the U.S. steel industry to ramp up production and re-hire workers by the second half of 2010, according to an AP report.
Daniel Porter, a lawyer representing the Chinese steel exporters, said the U.S. industry was hurt by a boom-and-bust cycle that resulted when the price of oil soared to about $140 a barrel in the summer of 2008, only to drop below $50 less than a year later.
Higher oil prices spurred more drilling, which caused oil companies to order more of the pipes. Those orders dried up when prices fell, Porter said.
"If demand collapses, that affects everyone," he said. "It has nothing to do with imports."
China and the U.S. are now engaged in several trade disputes over market access for goods ranging from poultry and tires to Hollywood movies.
People's Daily Online – Agencies
The case will affect about US$2.8 billion worth of Chinese imports, the Associated Press reported.
A group of U.S. steelmakers and the United Steelworkers union sought the duties in April, arguing that the Chinese steel industry was flooding the U.S. market with pipes sold at unfairly low prices. They also alleged that the Chinese companies benefited from government subsidies.
U.S. Steel, one of the eight companies that brought the complaint to the Obama administration, said in an e-mailed statement that it is "pleased" with the decision.
The U.S. International Trade Commission voted Wednesday to impose duties between 10.36 percent and 15.78 percent on the pipes, which are mostly used in the oil and gas industries. The ITC will decide in the spring whether to impose additional tariffs of up to 96 percent to penalize Chinese steelmakers.
Roger Schagrin, counsel for the United Steelworkers and five steel manufacturers, said the decision could enable the U.S. steel industry to ramp up production and re-hire workers by the second half of 2010, according to an AP report.
Daniel Porter, a lawyer representing the Chinese steel exporters, said the U.S. industry was hurt by a boom-and-bust cycle that resulted when the price of oil soared to about $140 a barrel in the summer of 2008, only to drop below $50 less than a year later.
Higher oil prices spurred more drilling, which caused oil companies to order more of the pipes. Those orders dried up when prices fell, Porter said.
"If demand collapses, that affects everyone," he said. "It has nothing to do with imports."
China and the U.S. are now engaged in several trade disputes over market access for goods ranging from poultry and tires to Hollywood movies.
People's Daily Online – Agencies
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