US DOC proposes changes to CVD rulemaking

Friday, 24 May 2019 18:55:39 (GMT+3)   |   San Diego
       

The US Department of Commerce (DOC) announced Thursday that it has issued a notice of proposed rulemaking to impose countervailing duties on countries that act to undervalue their currency relative to the dollar, resulting in a subsidy to their exports. US law defines a countervailable subsidy as a financial contribution from a government or public entity that is specific and that provides a benefit to a foreign producer or exporter.

“This change puts foreign exporters on notice that the Department of Commerce can countervail currency subsidies that harm US industries,” said Commerce Secretary Wilbur Ross. “Foreign nations would no longer be able to use currency policies to the disadvantage of American workers and businesses. This proposed rulemaking is a step toward implementing President Trump’s campaign promise to address unfair currency practices by our trading partners.”

The draft regulation identifies the criteria the DOC would use to determine if countervailing duties should be imposed for currency undervaluation.

Thomas J. Gibson, president and CEO of the American Iron and Steel Institute (AISI), issued a statement in response to the news:

“We applaud today’s strong and forceful action by the Commerce Department to penalize those countries that engage in the unfair trade practice of manipulating the value of their currencies to benefit their own exporters -- at the expense of US manufacturers. Today’s announcement by Secretary Ross is a significant step by the Trump Administration to help triage the massive damage that undervalued currency is causing to our nation’s manufacturing sector, especially the steel industry.”


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