US decides to slap duties on Chinese steel pipes
The United States made a preliminary decision to slap tariffs as high as 31 % on steel pipes from China following
claims they were backed by unfair subsidies. The Commerce Department said it had "preliminarily determined" that
Chinese producers or exporters of carbon or alloy tubular steel products used in oil and gas wells "have received net
countervailable subsidies ranging from 10.90 to 30.69 %."
"As a result of this preliminary determination, Commerce will instruct US Customs and Border Protection to collect a
cash deposit or bond based on these preliminary rates," the department said.
From 2006 to 2008, imports of such pipes -- officially known as oil country tubular goods (OCTG) -- from China
increased 203 % by volume, the statement said. They were valued at $ 2.6 bn last year.
The department pursued an investigation into the case after complaints from various US industry groups and unions,
including the United States Steel Corporation, and the United Steel, Paper and Forestry, Rubber, Manufacturing,
Energy, Allied Industrial and Service Workers International Union.
The department will issue a "final determination" on the issue in November.
"If Commerce makes an affirmative final determination, and the US International Trade Commission makes an affirmative
final determination that imports of OCTG from China materially injure, or threaten material injury to, the domestic
industry, Commerce will issue a countervailing duty order," the department said.
The decision came as US President Barack Obama faces pressure to slap punitive duties on tire imports from China to
save jobs at home. The quasi-judicial US International Trade Commission proposed tariffs of up to 55 % on Chinese
passenger and light truck tires based on a petition led by the United Steelworkers Union that the tire imports had
tripled since 2004, forcing plant shutdowns and the loss of 5,100 jobs.
Obama is required to make the decision just ahead of hosting Chinese President Hu Jintao at the G20 summit on
September 24-25.
