Steel Industry Wins Trade Case

U.S. Steel Industry Wins Trade Case Against China
The International Trade Commission voted 5-0 in favor of U.S. steel pipe manufacturers battling against a surge in imports from China.  The commission cleared the way for the imposition of stiff penalty tariffs for the next five years, Time reports.  The case opens a new avenue for U.S. manufacturers to seek protection against Chinese imports, alleging the Chinese government is unfairly subsidizing its own companies.

The commission ruling means that penalty tariffs ranging from 99% to 701% will be imposed on Chinese imports of circular welded pipe.  The decision marked the first time a U.S. industry has prevailed in winning a decision to impose tariffs on a Chinese product, based on the argument that the Chinese government was unfairly subsidizing a Chinese industry.

The article says that for over two decades, the U.S. government refused considering subsidy cases against the Chinese government on the grounds that the U.S. classified China as a nonmarket economy.  Last year, as the Bush administration faced increasing anger over soaring trade deficits with China, the administration said it would treat China in the same way that other countries are treated in disputes involving government subsidies.