USW Calls Proposed Tariffs for China Dumping of OCTG Pipe, Overdue Enforcement Message for U.S. Workers at Idled Plants

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Thu Nov 5, 2009 3:58pm EST

USW Calls Proposed Tariffs for China Dumping of OCTG Pipe, Overdue Enforcement
Message for U.S. Workers at Idled Plants




WASHINGTON, Nov. 5 /PRNewswire-USNewswire/ -- The United Steelworkers (USW)
called today's order by the U.S. Department of Commerce for proposed
anti-dumping tariffs on China pipe imports known as oil country tubular goods
(OCTG), an overdue message for thousands of American laid off workers that
trade laws are being enforced.

(Logo: http://www.newscom.com/cgi-bin/prnh/20080131/DC12982LOGO) 

According to documents, the OCTG trade case is the largest in U.S. history
against China imports valued at $2.6 billion in 2008. The U.S. government
order confirms overall, China's practice of dumping OCTG . This is the fifth
pipe and tube products dumping case since June 2007.

USW President Leo W. Gerard cited today's Commerce Dept. anti-dumping margins
for OCTG China exporters as promising to U.S. producers with nearly half its
workforce on layoff status caused by the huge inventory of dumped China pipe
imports. "China's government and exporters are being told we are fed up with
their cheating on our fair trade laws and penalties for these transgressions
are long overdue." 

The China-wide tariff margin announced by the Commerce Dept. is 99.14 percent.
However, Gerard was critical of the 'zero' tariff margin affixed to Jiangsu
Changbao Steel Tube Co. - one of China's largest OCTG exporters. "We question
why Changbao was singled out as if they were the only one among 75 other pipe
exporters who were considered not in violation. We plan to challenge this
finding as the case proceeds in our government's investigation." 

He adds: "Consistent and swift U.S. trade law enforcement must be the standard
with our trading partners if we are to retain good jobs and rebuild our
economic manufacturing capacity." The USW president said nearly half of the
domestic industry's 6,000 workers are now laid off. "China's dumped and
subsidized OCTG pipe imports are a threat to working families and the future
of a critical product used in our nation's energy extraction industry."

Seven domestic OCTG producers and the USW filed an antidumping and
countervailing duty trade case against China imports with the International
Trade Commission (ITC) and the U.S. Department of Commerce (DOC) on April 8 of
this year.  OCTG represents welded and seamless steel pipes that are used to
extract oil or gas from a drill well. 

USW Vice President Tom Conway, who handles labor agreement negotiations with
the pipe companies, said the U.S. government investigation in the OCTG trade
cases, 'gives reason to believe there will be a callback of laid-off American
pipe workers who can share in the recovery of this industry once the
unfairly-traded Chinese import inventory is de-stocked."

In September, the Commerce Dept. found China OCTG exporters benefited from
massive government subsidization and announced countervailing duty margins
ranging from 11 to 31 percent. According to the USW, the increase in Chinese
imports of OCTG are made worse by the global recession that increases the
impact on good jobs in the steel and pipe manufacturing sector.

In addition to the USW as co-petitioner, the seven producers of the OCTG
petition are:  U.S. Steel Corp., Pittsburgh, Pa.; Maverick Tube Corp.,
Hickman, Ark.; Evraz Rocky Mountain Steel, Pueblo, Colo.; TMK IPSCO, Downers
Grove, Ill.; V&M Star, LLP, Houston, Tx.; V&M TCA, Houston, Tx.; and Wheatland
Tube Corp., Beachwood, Oh.

Roger Schagrin, trade counsel for the USW at Schagrin Associates of
Washington, DC, said today's Commerce Dept. order allows the U.S. to begin
collecting a bond that will go into an escrow fund for all future OCTG
imports. The next step in the trade cases will be an ITC public hearing on
Dec. 1.   A final anti-subsidy or countervailing duty determination will be
made by the Commerce Dept. later this month, with a first ITC injury
determination in early January, while the dumping portion of the trade case
will be finalized in Spring 2010.

Contact:  Gary Hubbard  202-778-4384; 202-256-8125


SOURCE  United Steelworkers (USW)

Gary Hubbard of the United Steelworkers (USW), +1-202-778-4384;
+1-202-256-8125
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