Sunset Reviews - Who is in Charge?

Sunset Reviews - Who is in Charge?

This past Tuesday there was a routine news item about the International Trade Commission (ITC) giving its final determination in the sunset review of antidumping and countervailing duty orders (CVD) against cut-to-length (CTL) plates in carbon grades from France, India, Indonesia, Italy, Japan, and Korea. The report stated that the commission had determined that, with the exception of France, the antidumping and CVD orders against the other countries will not be revoked because it would likely "lead to a continuation or recurrence of material injury within a reasonably foreseeable time." As a result the antidumping order of CTL plates against France will be revoked while the AD and CVD orders against the others will continue for five more years when another sunset review will be initiated. A few points have to be made here: A dumping or countervailable duty order is supposed to expire in five years. For that purpose a sunset review is conducted by the Department of Commerce (DOC) and the ITC. The criteria are pretty much the same as the ones for the actual dumping or CVD investigation. The domestic steel industry and the foreign mills under investigation are invited to give their input. The domestic mills can ask not to revoke the dumping orders if they expect a continuation of dumping and injury to their industry should a particular AD or CVD order be canceled. At least one of these two government agencies (DOC or ITC) has to agree with such a request by the domestic petitioners and the dumping orders will be extended another five years. The Cato Institute, an independent think-tank located in Washington DC, recently completed a study of sunset reviews. They found that every time a domestic industry would oppose revocation of an antidumping or CVD order, the DOC would go along in 100 percent of the cases - no exceptions. The ITC is not much better. In 75 percent of the cases in which the domestic industry opposed revocation of an AD or CVD order, the ITC determined that such a revocation would "likely lead to a continuation or recurrence" of dumping and injury. It seems that the US domestic steel industry is pretty much in charge whether a dumping suit expires after five years or continues for another five. Not only can they extend their protection from foreign competition, they have another motive to uphold dumping orders. According to the Byrd Amendment, the affected US steel mills will collect the dumping penalties that are levied against steel imports under dumping or CVD orders. Every year US steel mills receive millions of dollars this way, especially from imports of Japanese steel. Not surprisingly, Mr. Hidenori Tazawa, chairman of the Japan Steel Information Center, NY was indignant about the cut-to-length plates ruling. He was reported as pointing to the tight US market, where customers are put on allocation or refused supplies. The continuation of the dumping order against Japan, India, Indonesia, Italy, and South Korea will ensure that the market stays tight and prices will stay high. For some, life is good!