USW Calls U.S. Tariff Ruling for China Dumping Pipe Case, Overdue Enforcement Message for Workers at Idled Plants

Contact:  Gary Hubbard  202-778-4384; 202-256-8125 >ghubbard@usw.org

Washington, DC (Apr. 9) – 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.

According to documents, the OCTG trade case is the largest in U.S. history against China imports valued at more than $2.6 billion in 2008 and about $1 billion last year. 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 much of 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.”

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.”

Pipe from 38 Chinese producers will be slapped with the 29.9 percent duties, while all others will have a 99.1 percent duty. The Commerce Dept. tariff margins announced include: Jiangsu Changbao Steel Tube Co. – 99.14 percent; and Tianjin Pipe Co. (TPCO) – 29.94 percent.

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 last 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 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.

The U.S. International Trade Commission (ITC) in December determined that the Chinese government has been subsidizing the pipe producers, and set duties currently being collected at levels ranging from 10.3 percent to 15.8 percent on top of the prices the steel pipe was being sold for in the U.S.

Roger Schagrin, trade counsel for the USW at Schagrin Associates of Washington, DC, said today’s Commerce Dept. order allows the U.S. to collect 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 final determination vote on May 10.  

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