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US sets final dumping and subsidy rates on iron mechanical components from China, Canada

(Xinhua) Updated: 2016-10-25 10:06

WASHINGTON - The US Commerce Department on Monday set final dumping and subsidy rates on imported imports of certain iron mechanical transfer drive components from China and Canada, signaling that it may impose punitive duties on the products.

The department made its final affirmative determination that those iron mechanical components, including pulleys, flywheels and bushings, from China and Canada had been sold in the United States at dumping margins of 13.64 percent to 401.68 percent and 100.47 percent to 191.67 percent, respectively.

Commerce also determined that imports of such products from China received countervailable subsidies of 33.26 percent to 163.46 percent.

The US International Trade Commission (ITC) is scheduled to make its final determination around December 5, 2016. If the ITC reaches an affirmative final determination that these products materially injure or threaten material injury to the US industry, the Commerce Department would issue antidumping duty (AD) and countervailing duty (CVD) orders. If the ITC makes a negative determination of injury, the investigations will be terminated.

The US Commerce Department launched the anti-dumping and countervailing duties probes over Chinese and Canadian iron mechanical components in November 2015 requested by TB Wood' s Incorporated based in the US state of Pennsylvania .

In 2014, imports of these products from China and Canada were estimated at $274.3 million and $222.3 million, respectively, according to US official data.

The case comes at a time when US steel producers increasingly resort to trade remedy and tariff protection to ride out a sluggish steel market, as steel excess capacity has become an acute global challenge.

US trade experts have warned that resorting to protectionism will not cure the US steel industry's grave ills, and that import restrictions serve to harm the overall US economy rather than help it.

The Chinese Ministry of Commerce has repeatedly urged the United States to abide by its commitment against protectionism and work together with China and other countries to maintain a free, open and just international trade environment.

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