The US Department of Commerce (DOC) has postponed the deadline for
its preliminary antidumping duty (AD) determinations in the wire rod investigation
until April 2, 2002. They will be made public on April 3, and the duties
will become effective upon the date the decision is published in the Federal
Register.
As previously reported in WireLine, major US carbon steel wire rod producers
filed a massive set of unfair trade cases against foreign producers from
12 countries. The petition charged that imports from Brazil, Canada, Egypt,
Germany, Indonesia, Mexico, Moldova, South Africa, Trinidad and Tobago,
Ukraine, and Venezuela have materially injured the domestic industry through
dumping or selling in the export market at a lower price than in the home
market. The petitioners alleged antidumping margins as high as 304% on
imports from these countries.
Additionally, petitioners have accused the governments of five countries
(Brazil, Canada, Germany, Trinidad and Tobago, and Turkey) of providing
illegal subsidies (countervailing duty or CVD petitions) to their carbon
steel wire rod industries, including export incentives, preferential loans,
grants and debt forgiveness.
On October 12, 2001, the International Trade Commission (ITC) made its
preliminary determinations in the investigations. The ITC made unanimous
affirmative injury determinations with respect to Brazil, Canada, Germany,
Indonesia, Mexico, Moldova, Trinidad and Tobago, Turkey, and Ukraine. The
ITC made negative determinations with respect to Egypt, South Africa, and
Venezuela, and therefore the investigations of these countries were terminated.
Making a bad situation even worse, in December, the petitioners filed
"critical circumstances" allegations. Critical circumstances alleges a
surge of imports due to a history of dumping or the importers knew, or
should have known, the merchandise was being "dumped." Their argument was
that the "American Wire Producers Association is reported to have informed
its members...that US wire rod producers were rumored to be planning antidumping
cases against (wire rod) from numerous countries." As a result, importers
"had reason to believe by the end of May 2001 that antidumping and/or countervailing
duty proceedings were reasonably imminent." AWPA submitted a strong brief
to the Commerce Department arguing against critical circumstances.
On February 8, 2002, the Department of Commerce published preliminary
CVD determinations of the countervailing duty margins. It made affirmative
determinations with respect to Canada, Germany, and Trinidad and Tobago,
and it made negative determinations with respect to Brazil and Turkey (see
the text box for specific margins).
At the same time, the Commerce Department made negative "critical circumstances"
determinations in the CVD investigations involving Brazil, Germany, Trinidad
and Tobago, and Turkey. However, they published affirmative "critical circumstances"
determinations in the AD investigations of Germany, Mexico, Moldova, Trinidad
and Tobago and Ukraine. An affirmative finding of critical circumstances
means that dumping duties can be assessed retroactively for a period of
90 days prior to the date on which the Commerce Department's preliminary
AD determination is published in the Federal Register.
Final Commerce Department AD and CVD determinations will be available
sometime in mid-June, with final ITC injury determinations in August, if
there are no more postponements. ITC hearings for the final injury phases
of these cases are expected to take place in mid-June.
Back to Wireline Contents
American Wire Producers Association
801 North Fairfax Street, Suite 211
Alexandria, VA 22314-1757
Tel (703) 299-4434 | Fax (703) 299-9233 | E-mail info@awpa.org | Web: www.awpa.org
