By Michael Roknick
American pipe executives and elected officials lined up to testify Tuesday in Washington, D.C., before the U.S. International Trade Commission on Chinese pipe imports.
The final public hearing before the six-member commission was billed as the largest U.S. trade case against Chinese imports valued at $2.6 billion.
American producers and the United Steelworkers are seeking tariffs and anti-dumping duties on China pipe known as oil country tubular goods. Such welded seamless pipes are used to extract oil or gas from drilled wells.
Nine members of Congress, three U.S. Senators and two governors joined USW President Leo Gerard and company executives who called for enforcement of current trade laws against the imported Chinese pipes.
Wheatland Tube Co. was among the seven pipe producers and the United Steelworkers that pleaded their case.
“Between the end of 2008 and September 2009, this industry lost 2,421 workers,” Gerard testified. “We come before you today seeking much-needed trade relief to permit the massive inventories of unfairly traded imports from China to be worked off so our workers can go back to work and regain their livelihoods and dignity.”
Pennsylvania Gov. Ed Rendell added that with more than 2,000 American workers who make oil country pipe, also known as OCTG, were laid off this past year.
“Pennsylvania is home to US Steel, Wheatland Tube, and TMK IPSCO. All of these firms produce OCTG,” Rendell said. “These firms have been severely impacted by unfairly traded Chinese OCTG which in the first three-quarters of 2009 accounted for approximately 37 percent of the US Market.’’
“American workers and producers need and deserve a fair chance to compete in their own market,” Sutton said. “Now more than ever, it is crucial that this Commission fully and effectively enforce our fair trade laws, and ensure that foreign producers refusing to follow global trading rules are not permitted to further injure American workers, companies and communities.”
“Compounding the problem is the fact that China stands to increase production of OCTG,’’ testified U.S. Rep. Kathy Dahlkemper, D-3rd District, Erie. “It currently has large amounts of unused capacity and continues to develop significant additional capacity. This enormous untapped capacity, together with China’s reliance on the U.S. market, creates a dangerous situation for domestic producers and the thousands of workers they employ.’’
U.S. Rep. Jason Altmire, D-4th District, McCandless, also testified.
“Chinese manufacturers have undermined America’s steel industry by flooding our markets with heavily subsidized imports,” Altmire said. “China has the capacity to produce more oil country tubular goods that it can consume or export at fair prices, and dumps underpriced goods in American markets. Therefore, it is critically important that the ITC impose duties on these products to provide American workers with the level playing field they deserve.”
The first ITC injury determination will be made in early January, while the dumping portion of the trade case will be finalized in Spring 2010.
