Post by jeffolie on Dec 3, 2007 18:49:36 GMT -6
Feds probe pipe imports
By Kristopher Hanson
Staff Writer
Article Launched: 12/03/2007 12:00:00 AM PST
A federal investigation prompted by a Long Beach company has found that Chinese pipe exporters are being illegally subsidized by the Chinese government, fueling an 840 percent increase in steel pipe imports to the U.S. since 2004.
The inquiry by the Department of Commerce revealed several Chinese steel companies were receiving subsidies of as much as 78 percent, in violation of international trade laws.
The new findings come just weeks after Commerce officials announced tariffs on other pipe exports from China because of similar illegal subsidies.
Domestic manufacturers blame artificially cheap Chinese imports for the loss of millions in revenues and several hundred steelworker jobs in recent months.
"It's greatly affected our fence business in the past few years," said Don Finn of Western Tube and Conduit in Long Beach, whose 258 employees produce ornamental fencing, window guards, railing and construction.
"Because there's no level playing field, it's been nearly impossible to compete."
American manufacturers, who included Western Tube and Conduit, petitioned the Commerce Department to investigate in June after watching a huge increase in steel tube and piping imports from China in recent years.
The pipe and tubing is used for construction projects and to build railing, fence posts, chain link fencing, ornamental fencing and window guards, as well as other uses - but not for the conveyance of liquid or
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gas.
Between 2004 and 2006, imports of these products jumped from about 8,800 tons to roughly 82,000 tons.
If the investigation's findings are upheld by the Commerce Department's International Trade Commission in May, Chinese exporters would be hit with tariffs that match the subsidies they receive from the Chinese government, said DOC Spokeswoman Brittany Eck.
Those subsidies range from 2.99 to 77.85 percent, Eck said.
United Steel Workers President Leo Gerard praised the ruling, saying duties will stem the loss of U.S. manufacturing jobs.
"It's critical for American manufacturing workers that the U.S. actively confront Chinese communist government subsidies by enforcing (tariff) laws," Gerard said.
The investigation is the latest in a string of U.S. inquiries into China's rapidly growing, export-dependent economy, which some believe is being unfairly fueled through an artificially deflated currency and generous government subsidies.
In March, the Commerce Department found that coated paper imports from China were being subsidized, leading to tariffs on those products. Coated paper is used for magazines, yearbooks, newsletters and catalogs.
From 2004 to 2006, imports of rectangular pipe from China increased 840 percent, with the bulk of those shipments coming through the twin ports of Long Beach and Los Angeles. Total value was estimated at $44 million, according to the Commerce Department.
www.presstelegram.com/ci_7618422
By Kristopher Hanson
Staff Writer
Article Launched: 12/03/2007 12:00:00 AM PST
A federal investigation prompted by a Long Beach company has found that Chinese pipe exporters are being illegally subsidized by the Chinese government, fueling an 840 percent increase in steel pipe imports to the U.S. since 2004.
The inquiry by the Department of Commerce revealed several Chinese steel companies were receiving subsidies of as much as 78 percent, in violation of international trade laws.
The new findings come just weeks after Commerce officials announced tariffs on other pipe exports from China because of similar illegal subsidies.
Domestic manufacturers blame artificially cheap Chinese imports for the loss of millions in revenues and several hundred steelworker jobs in recent months.
"It's greatly affected our fence business in the past few years," said Don Finn of Western Tube and Conduit in Long Beach, whose 258 employees produce ornamental fencing, window guards, railing and construction.
"Because there's no level playing field, it's been nearly impossible to compete."
American manufacturers, who included Western Tube and Conduit, petitioned the Commerce Department to investigate in June after watching a huge increase in steel tube and piping imports from China in recent years.
The pipe and tubing is used for construction projects and to build railing, fence posts, chain link fencing, ornamental fencing and window guards, as well as other uses - but not for the conveyance of liquid or
--------------------------------------------------------------------------------
Advertisement
--------------------------------------------------------------------------------
gas.
Between 2004 and 2006, imports of these products jumped from about 8,800 tons to roughly 82,000 tons.
If the investigation's findings are upheld by the Commerce Department's International Trade Commission in May, Chinese exporters would be hit with tariffs that match the subsidies they receive from the Chinese government, said DOC Spokeswoman Brittany Eck.
Those subsidies range from 2.99 to 77.85 percent, Eck said.
United Steel Workers President Leo Gerard praised the ruling, saying duties will stem the loss of U.S. manufacturing jobs.
"It's critical for American manufacturing workers that the U.S. actively confront Chinese communist government subsidies by enforcing (tariff) laws," Gerard said.
The investigation is the latest in a string of U.S. inquiries into China's rapidly growing, export-dependent economy, which some believe is being unfairly fueled through an artificially deflated currency and generous government subsidies.
In March, the Commerce Department found that coated paper imports from China were being subsidized, leading to tariffs on those products. Coated paper is used for magazines, yearbooks, newsletters and catalogs.
From 2004 to 2006, imports of rectangular pipe from China increased 840 percent, with the bulk of those shipments coming through the twin ports of Long Beach and Los Angeles. Total value was estimated at $44 million, according to the Commerce Department.
www.presstelegram.com/ci_7618422