Global Times - Oil well pipe exports to face US duties

Oil well pipe exports to face US duties

Source: Global Times
[01:09 November 26 2009]
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By Li Qiaoyi

The US Department of Commerce made a final ruling to impose duties on Chinese-made oil well pipes Tuesday, raising the ire of Chinese parties involved who fear increased protectionism will hurt trade.

Yao Jian, spokesman for the Ministry of Commerce (MOFCOM), stated Wednesday that the decision is a continuation of a series of discriminatory trade policies implemented by the US over the course of the year.

Imported Chinese-made oil well pipes have seen sales substantially increase in the US due to Chinese government subsidies, and countervailing duties ranging from 10.36 percent to 15.78 percent will be consequently imposed, the US Commerce Department said in a statement Tuesday.

Duties of 10.36 percent will be put on a Tianjin pipe enterprise, while a Zhejiang enterprise will face a 15.78 percent duty. Most other enterprises will have average duties of 13.2 percent.

The case, which involves $2.7 billion of Chinese pipe exports to the US, is the largest of its kind filed by the US on any product imported from China.

The US has made incorrect assumptions about the government subsidies, Yao said in a statement released Wednesday.

Yao reiterated that "the US should abide by the promise it made at the G20 Summit in September and the consensus both countries arrived at last week, that trade protectionism should be fought against."

Wu Xinchun, deputy secretary general of the China Iron and Steel Association, was quoted by Bloomberg as saying Wednesday that "no matter what the final duty is, we think the character of this action is pure trade protectionism."

"The duty, if applied, will seriously hurt Chinese exports of steel pipes next year, and even worse, it sets a bad example and may trigger other nations to follow suit," said Wu.

Wu's viewpoints were shared by Zhou Shijian, former vice president of China Chamber of Commerce of Metals, Minerals & Chemicals Importers and Exporters, who said that the anti-dumping cases filed by the US against Chinese products frequently will harm Sino- US trade relations.

The decision made by the US Commerce Department awaits final judgment expected next January by the US International Trade Commission (ITC).

Zhou believes that there is little hope for an ITC dismissal of the case since the government agency already gave the final okay to duties on Chinese tires earlier this year.