United States secretary of commerce, Wilbur Ross, this week announced the initiation of anti-dumping investigations into imports of carbon and alloy steel wire rod from South Africa and nine other countries.
“The Department of Commerce (DoC) will act swiftly to halt any possible unfair trade practices against US companies while also assuring a full and fair assessment of the facts,” said Ross.
The other nine countries include Belarus, Korea, Russia, Turkey, Italy, Spain, Ukraine, the United Arab Emirates and the United Kingdom. According to a statement released by the DoC, the total US import value of carbon and alloy steel wire rod from all ten countries is US$272.2 million (about R3.6 billion).
The US International Trade Commission (USITC) – responsible for conducting the antidumping preliminary phase injury investigation – will have 25 days to make its preliminary injury determination from the investigation’s initiation.
If the USITC finds that there is a “reasonable indication” that dumping has taken place then the DoC will continue its investigation. However, if they decide there is no reason to investigate further, the claim will be dismissed.
Since January 20, the DoC has opened 24 trade enforcement investigations relating to alleged dumping, or unfair subsidisation, of more than US$2.3 billion worth of US imports, and has made preliminary or final determinations on 34 antidumping/countervailing duty investigations impacting more than $3.6 billion of dumped or unfairly subsidised domestic imports.
According to a study by Colgate University in New York, US antidumping duties can lead to a decrease in exports – and total sales – as well as a drop in productivity for exporters affected.
