ITC announces remedy proposals in China safeguard investigation on pipes
The US International Trade Commission (ITC) yesterday announced the remedy proposals it will send to President George W. Bush and US Trade Representative (USTR) Rob Portman in its China safeguard investigation regarding circular welded non-alloy steel pipe from China. The announcement of the remedy proposals follows the ITC's October 3, 2005, determination on market disruption in the investigation. Out of six commissioners, four made an affirmative determination, finding that the subject product imported from China is being imported into the US in such increased quantities as to cause or threaten to cause market disruption. Two of the commissioners who made an affirmative determination announced that they would suggest that the President impose for a three-year period an annual quota of 160'000 short tons on circular welded non-alloy steel pipes imported from China. The other two affirmative-voting commissioners announced that they would suggest the imposition of a tariff-rate quota for a three-year period on imports of subject merchandise from China. Accordingly, the commissioners will propose that such imports be subject to a quota of 267'468 short tons in the first year of relief. The quota would then be increased by 5 percent, to 280'841 short tons, in the second year and by 10 percent, to 308'925 short tons, in the third year of relief. The proposed tariff-rate quota is based on circular welded non-alloy steel pipe imports of China in 2004. Imports over these quota levels will be subject to an ad valorem tariff of 25 percent. The remaining two commissioners, who voted in the negative, announced that they did not find any market disruption and will submit their views on remedy to the President and the USTR accordingly. The ITC will submit its report to the President and the USTR by October 21, 2005. The report will include the ITC's determination, views, and remedy proposals. The President will make the final decision whether to provide relief to the industry, and if so, the type and amount of relief.