ITC Vote Advances Carbon Steel Wire Rod Case
Washington, DC - The antidumping and countervailing duty cases filed by the major U.S. producers of carbon steel wire rod advanced another step with October's preliminary determination by the U.S. International Trade Commission (ITC) that imports from nine countries were injuring or threatening material injury to the domestic carbon steel wire rod industry.
The unanimous ITC vote covers dumped imports of carbon steel wire rod from Brazil, Canada, Germany, Indonesia, Mexico, Moldava, Trinidad and Tobago, and Ukraine; and subsidized imports from Brazil, Canada, Germany, Trinidad and Tobago, and Turkey. It is the next step in an unfair trade case filed on August 31, 2001, by four U.S. producers of carbon steel wire rod that charged the named countries- with the exception of Turkey- with "dumping" or selling in the export market at a lower price than in the home market. A simultaneous countervailing duty petition was filed against Brazil, Canada, Germany, Trinidad and Tobago, and Turkey, which alleged that these governments provide subsidies of substantial levels to their carbon steel wire rod industries.
The ITC also voted to terminate the antidumping investigations against Egypt, South Africa, and Venezuela. According to Paul Rosenthal, counsel to the petitioning U.S. companies, "We are very happy with the overall result.
Over the last 12 months, imports from the covered countries accounted for over 78 percent of total imports of carbon steel wire rod. Obviously, we were disappointed with the commission's finding that imports from Egypt, South Africa, and Venezuela were negligible based on a change in the import data since we filed the petition. We believe, however, that the standard for negligibility in a preliminary determination has been misapplied, and we will proceed with an immediate appeal."
The affirmative ITC finding moves the case forward at the Department of Commerce. When Commerce initiated the case, it identified potential antidumping and/or countervailing duties ranging up to 122.57 percent. Commerce must now determine preliminary dumping margins, which will be announced in early February 2002. The ITC will make a final injury determination late next summer, which would then lead to the imposition of antidumping and countervailing duties.
The petitioners are Co-Steel Raritan, Inc., Perth Amboy, NJ; GS Industries, Inc., Charlotte, SC; Keystone Consolidated Industries, Inc., Dallas, TX; and North Star Steel Texas, Inc., Edina, MN.
Paul C. Rosenthal, an international trade partner with the Washington, DC law firm, Collier Shannon Scott, PLLC, serve as lead counsel to the petitioners.