Rep. Dahlkemper Supports American Steel Industry at ITC Hearing on Chinese Dumping of Seamless Pipe

Congresswoman Kathy Dahlkemper (PA-3) today testified before the U.S. International Trade Commission (USITC) in support of the domestic seamless pipe industry and its workers, including two steel manufacturers from Pennsylvania: TMK IPSCO in Ambridge and U.S. Steel. With V&M Star L.P. of Youngstown, Ohio, and United Steelworkers, the petitioners are seeking antidumping and countervailing duty relief on certain seamless pipe from China.

On Oct. 30, 2009, the USITC determined that there is a "reasonable indication" that the U.S. seamless pipe industry is threatened with material injury by subsidized Chinese pipe. After today's hearing, a final vote on this case is scheduled for Oct. 15, 2010.

"The evidence is very clear that in the case of the seamless pipe industry, China has not been playing by the rules. They are benefiting from an artificial competitive edge they created, and it's time this stopped. Their unfair trade practices are hurting businesses and workers in Pennsylvania; we must be firm and enforce trade policies that give American workers and businesses a fair shake," said Rep. Dahlkemper.

The volume of U.S. imports of seamless pipe from China more than doubled, rising from 158,000 net tons in 2006 to 366,000 net tons in 2008. Although demand for seamless pipe declined significantly in early 2009 due to oversupply, another 123,000 net tons of Chinese imports entered the U.S. market that year, more than double the domestic shipments over the same period.

The full text of Congresswoman Dahlkemper's testimony as prepared for delivery before the USITC is below:

"Good morning Chairman Okun and members of the Commission. I am Congresswoman Kathy Dahlkemper and I represent the 3rd Congressional District of Pennsylvania. I am pleased to have the opportunity to testify before you today with regard to your consideration of the antidumping and countervailing duty case on certain seamless pipe from China.

"Pennsylvania is home to a number of steel pipe producers, including two petitioners in this case: TMK IPSCO of Ambridge and Koppel and U.S. Steel of Pittsburgh. Our state has had a long and successful history in manufacturing and specifically in steelmaking and fabrication. My Congressional District has numerous steel manufacturing facilities including steel pipe, and my constituents, many of whom are members of the United Steelworkers, are employed in the seamless pipe industry across the state.

"I am here to provide support for the seamless pipe industry and its workers located in Pennsylvania that are injured by unfairly traded imports from China. We have a responsibility to the hardworking people in the steel industry, and in every other industry, to make sure that when they are taking part in this global economy, other countries are playing fairly and our American workers are not getting the short end of the stick. The evidence is very clear that in the case of the seamless pipe industry, China has not been playing by the rules. They are benefiting from a competitive edge they created artificially, and it's time it stopped.

"As noted in the record, the industry and the union filed this antidumping and countervailing duty case on September 16, 2009, alleging that imports from China were dumped and subsidized. These imports more than doubled between 2006 and 2008 from 158,000 net tons to 366,000 net tons. In 2009, an additional 123,000 net tons entered the U.S. During this same period, these imports were more than domestic shipments of this product. We are now in the final stages of this investigation and the Commerce Department has issued affirmative findings that these products were dumped and subsidized at margins in this investigation of 13.66 percent to 98.74 percent.

"I value the opportunities of an open trade arena, but insist that this trade must be conducted fairly. In this matter the record clearly demonstrates that Chinese imports were taking a larger share of the U.S. market and placing many companies and workers at risk as a result of unfair trade practices. The future of these companies, their workers and communities has been compromised and we must ensure that they are provided relief to recompense for this unfair trade.

"My constituents depend on this Commission to strictly enforce our antidumping and countervailing duty laws, and I urge you to find that these unfairly traded imports have injured the domestic industry and workers.

"Thank you."

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