Tag: anti-dumping duties

Wiley Rein’s Alan Price: Trump Policies Have Potential to Stoke Trade Tensions

PriceAlan_150_110616Following this week’s historic election, many eyes will be on the new administration’s focus on international trade. Alan H. Price, partner and chair of Wiley Rein LLP’s International Trade Practice is a leading lawyer in the U.S. and abroad on international trade remedy and trade policy issues. We recently had a quick e-mail discussion with him on how the Trump Administration will view international trade and the implications of the presidential election.

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Jeff Yoders: President-elect Trump’s trade policy has looked protectionist on the campaign trail. What will that mean for U.S. trade?

Alan Price: The Administration of President-Elect Donald J. Trump may result in aggressive action on international trade issues, especially against China. Some companies will agree with such measures, and some will disagree.

With the election of Trump, ratification of the Trans-Pacific Partnership (TPP) is now unlikely in the short or medium term.

On China, Trump will look at potential currency manipulation, and will look to increase tariffs on China, potentially using our national security laws.

JY: What about immigration and the wall Trump has promised along the southern border between the U.S. and Mexico? And trade within the hemisphere?

AP: Regardless of the “wall” that Trump has promised to build between the U.S. and Mexico, he will try to renegotiate portions of the North American Free Trade Agreement (NAFTA)—and possibly other trade deals.

The Trump Administration should be favorable for new trade remedy cases, especially against China, and may even self-initiate cases in some circumstances.

JY: When it comes to domestic trade, Trump has promised to punish U.S. companies that outsource jobs. How would that even work?

AP: Trump’s trade agenda may include efforts to “retaliate” (through taxes, etc.) against U.S. companies that move operations abroad. His administration may also reexamine the role of the U.S. in the World Trade Organization (WTO), especially with respect to dispute resolution. There is great concern about U.S. laws being challenged and overturned by adverse WTO rulings, in areas where the U.S. never agreed to give up its economic sovereignty.

Duties Slapped on Corrosion-Resistant Steel From China, India, Italy, S. Korea

Duties Slapped on Corrosion-Resistant Steel From China, India, Italy, S. Korea

The Department of Commerce has released affirmative preliminary determinations in the countervailing duties investigations of imports of corrosion-resistant steel products from China, India, Italy, and South Korea, and a negative preliminary determination in the countervailing duties investigation of imports of corrosion-resistant steel from Taiwan.

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The investigations cover corrosion-resistant steel including flat-rolled products that have been clad, coated or plated with corrosion- or heat-resistant metals (usually zinc or aluminum) to prevent corrosion and thereby extend the service life of products made from the steel. Corrosion-resistant steel products are typically used in the manufacture of trucks and automobiles, appliances, agricultural equipment, and industrial equipment.

Imports Found to Be Subsidized

Commerce preliminarily determined that producers/exporters in China, India, Italy, and Korea received local and national government subsidies ranging from 26.26% to 235.66%, 2.85% to 7.71%, de minimis (less than 2%) to 38.41%, and de minimis to 1.37%, respectively.

Chinese Firms Do Not Comply

The China investigation is particularly interesting as mandatory Chinese respondents Angang Group Hong Kong Company Ltd., Baoshan Iron & Steel Co., Ltd., Duferco SA (and its cross-owned companies Hebei Iron & Steel Group, and Tangshan Iron and Steel Group Co., Ltd.), Changshu Everbright Material Technology, and Handan Iron & Steel Group either notified Commerce that they would not participate in this investigation or did not participate in the investigation.

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As a result, these companies received a whopping subsidy rate of 235.66% based on adverse facts available following Commerce’s preliminary determination that the companies had not cooperated in the investigation. All other producers/exporters in China have been assigned a preliminary subsidy rate of 26.26%.

US Companies Get Relief

The petitioners for these investigations are U.S. Steel Corporation (PA), Nucor Corporation (NC), ArcelorMittal USA (IL), AK Steel Corporation (OH), Steel Dynamics, Inc. (IN), and California Steel Industries, Inc. (CA). They have to be happy with the initial determinations, although these import duties might go down or be removed entirely before the process is finalized.

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Make in India Comes to the Rescue of India’s Aluminum Industry

Make in India Comes to the Rescue of India’s Aluminum Industry

Indian aluminum players are awaiting the annual ritual of the budget release at the end of the month. Domestic manufacturers want to know whether the Indian government manages to correct the anomalies in the existing tax structure to even out the playing field between Indian and foreign manufacturers.

FREE Download: The Monthly MMI® Report – covering the Aluminum market.

Aluminum imports have been steadily increasing over the last couple of years, leading to cries of foul play from Indian manufacturers. China is one of the biggest importers, as reported by MetalMiner.

Dumpwatch: Low Ruble Prices Bringing Russian Steel to India

Dumpwatch: Low Ruble Prices Bringing Russian Steel to India

First it was China, now India’s steel makers face a similar “cheap imports” threat from a neighbor, this time Russia. The depreciation of the Russian ruble against the US dollar has started to have its effect felt in India’s steel sector.

FREE Download: The Monthly MMI® Report – covering Steel/Iron Ore markets.

Since the last two months, even as steel majors have watched the developments from the sidelines, the steady decline in the ruble’s value has led to local players increasingly importing Russian alloy. It is Russia as the flavor of the month, much to the consternation of Indian steel companies, and the situation is not going to improve anytime soon.

DumpWatch: Silicon Tariffs Will Change the US Solar Industry in 2015

DumpWatch: Silicon Tariffs Will Change the US Solar Industry in 2015

The Commerce Dept. confirmed steep import duties yesterday on solar products from China and Taiwan earlier on Wednesday in a decision that may inflame trade tensions between the two countries.

FREE Download: The Monthly MMI® Report – covering the Renewable Energy metals market.

The first domino to fall from the tariffs came in a statement from Norway’s REC Silicon, saying earnings will be impacted by the duties, some as high as 126%.

US Steel Market Facing a Chinese Import Invasion as Russia is Disinvited

US Steel Market Facing a Chinese Import Invasion as Russia is Disinvited

There was a film comedy from the 1960’s called “the Russians are coming” that was a spoof about a Russian submarine that ran aground off the US coast and the invasion panic that ensued.

FREE Download: The Monthly MMI® Report – covering Steel/Iron Ore markets.

Well, the US isn’t facing a Russian invasion today, but it may be about to face a Chinese one, or at least the steel markets may. According to the FT Chinese steel exports were a record 8.52 million tons last month, an increase of 73% from a year earlier, according to customs data.

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