The following article appeared in the King & Spalding Trade & Manufacturing Alert here.
In response to petitions filed by members of various domestic industries, the Administration initiated five antidumping (“AD”) and countervailing duty (“CVD”) investigations on April 19-20. The five industry-specific cases were brought against (a) bottom mount refrigerator-freezers from Korea and Mexico, (b) steel wheels from China, (c) galvanized steel wire from China and Mexico, (d) stilbenic optical brightening agents from China and Taiwan, and (e) steel nails from United Arab Emirates. A major factor in initiating these cases was the increase in imports during 2010 after lower imports in 2009. In most of these cases, the total value and/or volume of imports of the subject merchandise decreased from 2008 to 2009, but increased from 2009 to 2010. These increases appear to be following the trend of growth in the U.S. economy, indicating that conditions may be ripe for more trade petitions.
These new petitions came after a significant lull in trade remedy petitions. Only one investigation was initiated from May 2010 to April 2011. Several U.S. government officials and private practitioners offered their views on the lull in the April 12, 2011 program “Are AD/CVD Remedies Still Viable For U.S. Producers?” held at American University’s Washington College of Law. Christian Marsh, Deputy Assistant Secretary for AD and CVD Operations at the Department of Commerce suggested that the dip in AD and CVD petitions during 2010 may be related to circumvention issues. Mr. Marsh stated that because of the continuing burden on petitioners to fight circumvention after the initial case is won, an industry may perceive the that the cost of bringing a new trade petition to be high. The newly filed petitions, however, suggest that the real reason for a decline in filings may have been a temporary decline in imports caused by the recession.
Bradford Ward, Deputy General Counsel & Acting Assistant U.S. Trade Representative for Monitoring and Enforcement remarked that industries will continue to file AD and CVD petitions if they experience distortions in the market because trade remedies are one of the last tools available to combat international unfair trade practices. Mr. Ward also commented that industries may file AD and CVD petitions if they believe that the government is not responding to their concerns through legislation or other government-to-government dialogues.
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