Posted at 8:54 PM
Today, U.S. Secretary of Commerce Wilbur Ross announced the final determinations of antidumping (AD) and countervailing duties (CVD) investigations, finding that imports of steel reinforcement bar (rebar) from Japan and Turkey have been sold in the U.S. market at unfair prices, and that rebar imports from Turkey have been unfairly subsidized by the Turkish government.
The Commerce Department determined that exporters from Japan have dumped rebar in the United States at 206.43 percent to 209.46 percent less than fair value (AD). Exporters from Turkey have sold rebar in the United States at 5.39 percent to 8.17 percent less than fair value (AD) and received unfair government subsidies of 16.21 percent (CVD).
“The United States can no longer sit back and watch as its essential industries like steel are destroyed by foreign companies unfairly selling their products in the U.S. markets,” said Secretary Ross. “We will continue to take action on behalf of U.S. industry to defend American businesses, their workers, and our communities adversely impacted by unfair imports.”
In 2016, imports of steel rebar from Japan were estimated to be worth $96.1 million; imports from Turkey were valued at $511.9 million.
Commerce has instructed Customs and Border Protection to collect cash deposits from importers of rebar based on these final rates.
Imports of steel rebar from Japan have increased steadily, from 23,335 metric tons worth $12.3 million in 2013, to 85,248 metric tons worth $46.6 million in 2014, to 242,336 metric tons in 2015 worth $108.7 million.
Imports of steel rebar from Turkey also have increased steadily, from 650,049 metric tons worth $381.3 million in 2013, to 890,130 metric tons worth $520.5 million in 2014, to 1,474,457 metric tons worth $674.4 million in 2015.
The Rebar Trade Action Coalition filed the case with the Commerce Department on behalf of its individual members:
- Byer Steel Group, Inc., Cincinnati, Ohio
- Commercial Metals Co., Irving, Texas
- Gerdau Armisteel U.S., Inc., Tampa, Fla.
- Nucor Corp., Charlotte, N.C.
- Steel Dynamics, Inc., Pittsboro, Ind.
Click HERE for a fact sheet on this trade case.
The U.S. International Trade Commission (ITC) is conducting a parallel investigation to determine if the American producers have been harmed by steel rebar imports from Japan and Turkey. The ITC is scheduled to make its final determination on or before June 29, 2017. If the ITC does not find that U.S. producers have been harmed, then the investigations will end, and no duties will be collected.
The U.S. Department of Commerce’s Enforcement and Compliance unit within the International Trade Administration is responsible for vigorously enforcing U.S. trade laws and does so through an impartial, transparent process grounded in U.S. law that reflects international rules and is based solely on factual evidence.
Foreign companies that price their products in the U.S. market below the cost of production or below prices in their home markets are subject to “antidumping” (AD) duties.
Companies that receive unfair subsidies from their governments in the form of grants, loans, equity infusions, tax breaks and production inputs are subject to “countervailing duties”(CVD) aimed at directly countering those subsidies.
From January 20, 2017, through May 16, 2017, Commerce has initiated 44 antidumping and countervailing duty investigations. Commerce currently maintains 390 antidumping and countervailing duty orders which provide relief to American companies and industries impacted by unfair trade.