GHY Tradelines

(Keith Bradsher – NYT)

The Obama administration and the European Union have each decided to negotiate settlements with China in the world’s largest antidumping and antisubsidy trade cases involving China’s roughly $30 billion a year in solar panel shipments to the West, officials and trade advisers in Beijing, Brussels and Washington said.

The plan that is starting to take shape would essentially carve up the global solar panel market into a series of regional markets. It would sharply raise the price of solar panels exported from China, the world’s dominant producer, by requiring Chinese companies to charge more while limiting the total number of solar panels they could ship.

In exchange, Chinese companies would no longer be charged steep taxes on their exports of solar panels. The United States is already collecting tariffs totaling about 30 percent while the European Union is expected to impose similar tariffs of about 50 percent on June 5, and may backdate them to March 5. Read more here.
 

(BJ Siekierski – iPolitics)

The Chinese must be starting to wonder if the Harper government has something against their exports.

On the heels of the decision to graduate the Chinese and others from the General Preferential Tariff — announced first in the Canada Gazette, but only widely noticed in Budget 2013 — the government has quietly targeted China again, along with Vietnam, by amending the Special Import Measures Regulations in late April.

These regulations, in conjunction with the Special Import Measures Act, are the basis for Canada’s trade remedy legislation — they provide the rules of the game for determining when goods from a country are being dumped or subsidized, and therefore ‘injuring’ Canadian industries.

But most importantly, they allow for anti-dumping or countervailing duties to be applied when injury is determined. Read more here.
 

(AFP)

China must fall into line by July 31 with a World Trade Organisation order to change its restrictive policy on certain steel imports from the United States, an arbitrator said Friday.

A WTO dispute settlement hearing decided that Beijing had failed to prove why it needed more time to adapt its rules in order to respect a decision handed down by global commerce’s rule-setting body in November. [...]

The dispute dates back to September 2010, when Washington accused China of breaching trade rules by not providing sufficient evidence that anti-dumping duties were needed on US imports of electrical steel used in the power sector. Read more here.
 

(CBSA)

Concerning a determination under paragraph 76.03(7)(a) of the Special Import Measures Act regarding CERTAIN CARBON STEEL WELDED PIPE ORIGINATING IN OR EXPORTED FROM THE PEOPLE’S REPUBLIC OF CHINA

DECISION
On April 4, 2013, pursuant to paragraph 76.03(7)(a) of the Special Import Measures Act, the President of the Canada Border Services Agency determined that the expiry of the finding made by the Canadian International Trade Tribunal on August 20, 2008, in Inquiry No. NQ-2008-001, concerning the dumping and subsidizing of certain carbon steel welded pipe originating in or exported from the People’s Republic of China was likely to result in the continuation or resumption of dumping and subsidizing of these goods into Canada.

Details here or download the entire Statement of Reasons.
 

(Ethan Bilby – Global Post)

EU trade regulators want to expand the scope of their powers to go after companies in anti-dumping investigations, according to EU documents obtained by Reuters.

The proposal, if approved by EU governments and EU lawmakers, would make it legally easier for the European Commission to demand companies hand over sensitive data to prove that some foreign products are sold at below cost in Europe. It could also result in the EU trade authority levying punitive duties on more Chinese goods and at the same time increase its leverage over China and other countries in trade disputes. Read more here.
 

(STR Trade Report)

The International Trade Administration has issued a final rule that, effective May 10, will amend its regulations regarding the definition of factual information and the submission of factual information in antidumping and countervailing duty proceedings. This rule:

- modifies the definition of factual information to include five categories: (1) evidence submitted in response to questionnaires, (2) evidence submitted in support of allegations, (3) publicly available information to value factors under 19 CFR 351.408(c) or to measure the adequacy of remuneration under 19 CFR 351.511(a)(2), (4) evidence placed on the record by the ITA, and (5) evidence other than factual information described above;

- establishes specific time limits for the submission of information under each category to help prevent situations in which the ITA has to review large amounts of factual information when it is too late to adequately examine, analyze, conduct follow-up inquiries and, if necessary, verify the information; and

- requires submitters to specify the category of information they are submitting.

The ITA states that if parties find that an administrative record is lacking factual information they should explain what additional information they wish to submit, explain why it was not available for timely submission and request that the ITA accept it. If there is adequate time for rebuttal, comment, analysis and thorough consideration of the new, previously unavailable information and the ITA could potentially verify it, the agency may elect to permit submission. Otherwise, the reliability of such late-submitted information cannot be assured.

This rule will apply to any interested party submitting information to the ITA in AD/CV proceedings, which could include exporters and producers of merchandise subject to AD/CV proceedings and their affiliates, importers of such merchandise, domestic producers of like products, and foreign governments.
 

(CITT)

The Canadian International Trade Tribunal today initiated a preliminary injury inquiry into a complaint by Tree Island Steel Ltd., of Richmond, British Columbia, that it has suffered injury as a result of the dumping of galvanized steel wire from the People’s Republic of China, the State of Israel and the Kingdom of Spain and the subsidizing of these goods from the People’s Republic of China. The Tribunal’s inquiry is conducted pursuant to the Special Import Measures Act as a result of the initiation of dumping and subsidizing investigations by the Canada Border Services Agency (CBSA).

On March 22, 2013, the Tribunal will determine whether there is a reasonable indication that the alleged dumping and subsidizing have injured the domestic industry. If so, the CBSA will continue its investigations and, by April 22, 2013, will issue preliminary determinations. If these preliminary determinations indicate that there has been dumping or subsidizing, the CBSA will then continue its investigations and, concurrently, the Tribunal will initiate a final injury inquiry. Anti-dumping and/or countervailing duties will be imposed only if the Tribunal finds that dumped or subsidized products are injuring or threatening to injure the Canadian producers.

The Tribunal is an independent quasi-judicial body that reports to Parliament through the Minister of Finance. It hears cases on dumped and subsidized imports, safeguard complaints, complaints about federal government procurement and appeals of customs and excise tax rulings. When requested by the federal government, the Tribunal also provides advice on other economic, trade and tariff matters.

Any interested person, association or government that wishes to participate in the Tribunal’s inquiry may do so by filing a Notice of Participation.

For more information, visit here.
 

(STR Trade Report)

The International Trade Administration is proposing to amend its regulations regarding the extension of time limits associated with antidumping and countervailing duty proceedings. The proposed rule would apply to any interested party requesting such an extension, which could include exporters and producers of merchandise subject to AD/CV proceedings and their affiliates, importers of such merchandise, domestic producers of like products, and foreign governments. Comments on this proposal are due no later than March 18.

Currently, 19 CFR 351.302(c) only allows parties to AD or CV proceedings to request an extension of a time limit associated with the submission of factual information. The ITA is proposing to expand this provision so that parties would be able to request an extension of any time limit established in the AD/CV regulations.

Further, the current regulation does not account for extension requests filed after the time limit. Asserting that in the vast majority of situations there should be no reason why a party cannot request an extension prior to the expiration of the applicable time limit, the ITA is proposing to specify that an untimely-filed extension request will not be considered unless the party demonstrates that extraordinary circumstances exist.

Finally, the ITA considers that untimely-filed extension requests encompass those that come in after the applicable time limit expires but is requesting comments on whether the term “untimely” should also include extension requests that are made very close to the applicable time limit (e.g., within 24-48 hours) such that the ITA does not have the opportunity to respond before the time limit expires. The ITA also requests comment on whether there should be a separate standard for extension requests for submissions that are due from multiple parties simultaneously, such as case and rebuttal briefs.
 

(Reuters – Doug Palmer)

The United States pressed forward on Tuesday with plans to slap steep punitive duties on wind turbine towers imported from China at prices deemed unfairly low, even as officials welcomed a high-level Chinese delegation for trade and economic talks.

The Commerce Department set final anti-dumping duties ranging from 44.99 to 70.63% on utility-scale towers manufactured in China and additional countervailing duties of 21.86 to 34.81% to combat Chinese government subsidies. Read more here.
 

(AP)

The Commerce Department indicated it may side with Florida tomato growers and squash a 16-year-old trade agreement with Mexico.

The move Thursday would allow U.S. growers to seek anti-dumping duties on imports of fresh tomatoes from Mexico. Tomato growers in Florida have sought to have the agreement ended, arguing that it is outdated and that Mexican imports are crippling the domestic industry. Read more here.
 

(The Telegraph)

The European Commission launched an investigation on Thursday into suspected dumping of solar panels by Chinese producers, drawing a warning from China that restrictions on its exports would hurt the global clean energy sector.

The investigation into the biggest import sector ever targeted by the Commission stems from a complaint by a group of European solar companies, led by Germany’s SolarWorld, Reuters reports. The group, comprising members in Germany, Italy and other EU countries, says Chinese solar firms have been selling panels below market value in Europe.

Brussels’ anti-dumping investigation will also cover key component of solar panels originating in China.

China’s solar firms warned in July of a trade war, calling on their government to strike back against the impending investigation. Chinese producers include Yingli Green Energy, Suntech Power Holdings, Trina Solar and Canadian Solar. Read more here.
 

(Hans Greimel – Automotive News)

So much for the much-ballyhooed South Korea free-trade agreements.

Separate deals with the European Union and United States were brokered only after much wrangling to ensure that automakers from those regions would get fair access to Korea.

But less than four months after the EU pact took effect, France is crying foul.

With hometown carmakers hit hard by the European economic crisis, the government is accusing Hyundai and Kia of dumping. Read more here.
 

(STR Trade Report)

The International Trade Administration unveiled this week the second phase of its electronic document filing system for antidumping and countervailing duty proceedings. The AD/CV Centralized Electronic Service System was first launched in August 2011 and requires parties to electronically submit public and proprietary documents for the record of AD/CV proceedings. IA ACCESS Release 2 gives interested parties and the general public online access to all public versions of documents submitted to the proceeding record since that time. Release 3, which is scheduled for 2013, will make proprietary documents available to authorized external parties.

Separately, the ITA has extended from Aug. 24 to Sept. 24 the period for public comment on a proposal to amend the definition of “factual information” submitted in AD and CV duty proceedings and establish specific time limits for the submission of such information. The ITA has said that this proposed rule would not change the types of information that can be submitted but instead would allow for more accurate classification of factual information.

Click here for more information.
 

(The Canadian Press)

The Canadian International Trade Tribunal has initiated a final inquiry into the dumping of carbon steel welded pipe in Canada by several countries from the Mideast to Asia.

The tribunal said Tuesday that it would rule Dec. 11 on whether the dumping and subsidizing have caused injury or threaten to cause injury to the domestic industry.

Dumping occurs when goods are sold to importers in Canada at prices that are less than their selling pres in the exporter’s domestic market or at unprofitable prices.

Subsidies occur when goods imported into Canada benefit from foreign government financial assistance.

At issue is the dumping of what is commonly identified as standard pipe, in the nominal size range from 1/2 inch up to six inches (12.7 millimetres to 168.3 millimetres) in various forms and finishes.

The pipe either originated in or was exported by Taiwan, India, Korea, Thailand, Turkey the United Arab Emirates and Oman. Read more here.
 

(Liu Yiyu – China Daily)

Despite challenges, nation is still investing heavily in solar projects

Just nine months after the United States initiated an investigation against China’s solar panels industry, Europe – the largest buyer of Chinese solar products – is likely to start another round of a trade war with Chinese manufacturers.

German company SolarWorld AG has filed a petition with the European Union to request an anti-dumping investigation on solar products imported from China.

If the EU follows the US precedent and launches an anti-dumping investigation, the Chinese solar industry could suffer a serious blow, according to a joint statement issued by more than 30 Chinese companies.

The statement underlined the fact that the domestic market – despite its promising potential – is not an immediate alternative for local companies.

But things might change as the Chinese market develops. Read more here.
 

(Ulrika Lomas – Tax-News.com)

China has initiated an appeal against the findings of a World Trade Organisation (WTO) panel in its June 2012 assessment of a case relating to China’s imposition of anti-dumping and countervailing import duties on grain-oriented flat-rolled electrical steel (GOES) from the United States.

On September 15, 2010, the US requested consultations with China with respect to measures imposing countervailing duties and anti-dumping duties on GOES from the US, detailed in Final Determination 21 of 2010, released by the Chinese Ministry of Commerce (MOFCOM) in April 2010.

China argued that subsidies in the “Buy America” provisions of the American Recovery and Reinvestment Act 2009, and state government procurement laws conferred a benefit to US producers of GOES. In its Determination, MOFCOM calculated ad valorem subsidy rates of 11.7% and 12% for the respondent companies, and dumping margins of 7.8% and 19.9%. Read more here.
 

(Sohrab Darabshaw – MetalMiner)

India is the latest country to cry foul over the dumping of cheap imports by Southeast Asian countries in what is being dubbed as a “mini-war” in global trade.

In the last month or so, steel producers from around the globe have already exchanged accusations of rivals in foreign lands dumping cheap metal into their markets. The countries at which fingers are being pointed are not only China, but also Russia, Ukraine and Korea.

Now, it’s the Indian steel producers’ turn to cry foul. Last week, The Business Standard reported on how the Comprehensive Economic Partnership Agreement (CEPA) is proving to be a new headache for Indian steel producers, who are already struggling with other problems beyond anti-dumping issues such as shortages of iron ore and skittish prices. They are now demanding that steel products be kept away from such Free Trade Agreements. Read more here.

(CITT)

The Canadian International Trade Tribunal has initiated a preliminary injury inquiry into a complaint by Allan Window Technologies, of Concord, Ontario, Ferguson Neudorf Glass Inc., of Beamsville, Ontario, Flynn Canada Ltd., of Mississauga, Ontario, Inland Glass & Aluminum Ltd./Aluminum Curtainwall Systems Inc., of Kamloops, British Columbia, Oldcastle Building Envelope, of Concord, Ontario, Sota Glazing Inc., of Brampton, Ontario, Starline Architectural Windows Ltd., of Langley, British Columbia, and Toro Aluminum/Toro Glasswall Inc., of Concord, Ontario, that they have suffered injury as a result of the dumping and subsidizing of unitized wall modules from the People’s Republic of China. The Tribunal’s inquiry is conducted pursuant to the Special Import Measures Act as a result of the initiation of dumping and subsidizing investigations by the Canada Border Services Agency (CBSA).

On September 14, 2012, the Tribunal will determine whether there is a reasonable indication that the alleged dumping and subsidizing have injured the domestic industry. If so, the CBSA will continue its investigations and, by October 15, 2012, will issue preliminary determinations. If these preliminary determinations indicate that there has been dumping or subsidizing, the CBSA will then continue its investigations and, concurrently, the Tribunal will initiate a final injury inquiry. Anti-dumping and/or countervailing duties will be imposed only if the Tribunal finds that dumped or subsidized products are injuring or threatening to injure the Canadian producers.

Any interested person, association or government that wishes to participate in the Tribunal’s inquiry may do so by filing a Notice of Participation.

Gillian Burnett
Acting Secretary
613-990-2452
secretary@citt-tcce.gc.ca
www.citt-tcce.gc.ca/new/index_e.asp
 

(Bloomberg News)

China’s allegation that renewable- energy subsidies in five U.S. states violate free-trade rules ratchets up a potentially costly trade war between the world’s two largest economies.

“It’s a long, slow escalation of trade and currency wars as we race to the bottom,” said Theodore O’Neill, an analyst with Wunderlich Securities Inc. of New York.

Programs supporting renewable power, including wind and solar, in Washington state, New Jersey, Massachusetts, Ohio and California, violate World Trade Organization policies and trade treaties, according to a preliminary finding of an investigation posted yesterday on the website of China’s Ministry of Commerce. China filed a complaint today at the WTO over U.S. procedures for calculating anti-subsidy duties on imports. Read more here.
 

(MarketWatch)

The Canadian International Trade Tribunal today found that the dumping and subsidizing of certain stainless steel sinks from China had caused injury to the domestic industry. Anti-dumping and countervailing duties will therefore be collected by the Canada Border Services Agency on these goods. The complainants in this case were Novanni Stainless Inc. of Coldwater, Ontario, and Franke Kindred Canada Limited of Midland, Ontario.

The Tribunal will issue the reasons for its finding on June 8, 2012.

The Tribunal is an independent quasi-judicial body that reports to Parliament through the Minister of Finance. It hears cases on dumped and subsidized imports, safeguard complaints, complaints about federal government procurement and appeals of customs and excise tax rulings. When requested by the federal government, the Tribunal also provides advice on other economic, trade and tariff matters.