Trade panel approves antidumping probe into China pipe

WASHINGTON (Reuters) - A U.S. trade panel on Friday approved a Commerce Department investigation that could lead to new duties of nearly 100 percent or more on imports of about $382 million of steel pipes from China.

The U.S. International Trade Commission voted 6-0 that there was a reasonable indication that imports of the allegedly subsidized and unfairly priced pipes could harm U.S. producers.

The Commerce Department began its investigation earlier this month upon accepting a petition filed by U.S. Steel, V&M Star LP, TMK IPSCO and the United Steelworkers union.

The ITC vote came one day after Chinese Commerce Minister Chen Deming said U.S. Commerce Secretary Gary Locke and U.S. Trade Representative Ron Kirk committed in annual high-level talks to "avoid abusing trade protection measures."

A U.S. spokeswoman said that did not mean Washington promised not to accept new petitions asking for duties or other restrictions on imports from China.

President Barack Obama angered China last month by imposing a 35 percent duty on Chinese-made tires in response to a petition from the Steelworkers union, which also represents workers at many U.S. tire plants.

The latest case involves seamless carbon and alloy steel standard, line and pressure pipe used in industrial piping systems to convey water, steam, oil products, natural gas and other liquids and gases.

Imports of the product from China increased nearly 132 percent by volume from 2006 to 2008 to an estimated $382 million, the Commerce Department said.

A Commerce Department investigation of the Chinese pipe imports will determine the size of the duties to be imposed. For the duties to become final, the ITC must vote next year that U.S. producers are threatened by the imports.

The petitioners have requested a 98.37 percent anti-dumping duty to offset what they allege to be unfairly low prices for Chinese-made steel pipe sold in the United States.

They also want additional countervailing duties to offset suspected Chinese government subsidies.

(Reporting by Doug Palmer; Editing by Will Dunham and Bill Trott)