US slaps punitive tariffs on Chinese wire decking
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The U.S. Commerce Department Friday set final anti-dumping duties (AD) and countervailing duties (CVD) on imports of some 235.9-million-dollar wire decking from China, a move which might escalate trade disputes between the two countries.
"Commerce determined that Chinese producers/exporters have sold wire decking in the United States at 14.24 to 143.00 percent less than normal value," said the department in a statement.
Moreover, the department also ruled that the Chinese producers/exporters have received net countervailable subsidies of 1.52 to 437.11 percent.
Chinese Minister of Commerce Chen Deming recently called on world governments to remain alert to trade protectionism for the sake of a global recovery.
"There is still uncertainties and tough way ahead. As the world is going through an economic recovery, countries across the world need to make concerted efforts to stand against protectionism and support liberalization of trade and investment," he said.
As a result of the final determination, the Commerce Department will instruct U.S. Customs and Border Protection (CBP) to collect a cash deposits or bonds on imports of certain wire decking from China based on the final AD and CVD rates.
The petitioners for these investigations are AWP Industries, Inc., ITC Manufacturing, Inc., J&L Wire Cloth, Inc. , Nashville Wire Products Mfg. Co., Inc., and Wireway Husky Corporation.
The product covered by these investigations is welded-wire rack decking produced from carbon or alloy steel wire that has been welded into a mesh pattern.
The wire mesh is reinforced with structural supports and designed to be load bearing. Wire decking reinforced with structural supports is designed generally for industrial and other commercial storage rack systems.
The U.S. International Trade Commission (ITC) is scheduled to issue its final injury determination on or before July 2010.
If the ITC makes affirmative final determinations that imports of certain wire decking from China materially injure, or threaten material injury to, the domestic industry, the Commerce Department will issue AD and CVD orders.
U.S. imports of the wire decking were valued at an estimated 235.9 million dollars in 2009.
The protectionist moves by the Obama administration will ultimately hurt the U.S.-China trade relations, which are becoming more and more important due to the global financial crisis, economists warned.
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