Pipe workers rally for trade sanctions

By Michael Roknick
Herald Business Editor

SHENANGO VALLEY May 13, 2008 11:23 pm

— Wheatland Tube Co. saw 50 of its workers, managers and executives rally Tuesday for trade sanctions against Chinese pipe imports before a U.S. International Trade Commission hearing.
Transfer resident and Wheatland Tube worker Mickey Bolt was among those attending the Washington, D.C., hearing where the ITC heard testimony from United Steelworkers and five American pipe producers.
The five companies and USW filed a trade complaint against Chinese pipe producers saying they were dumping their products on American shores and should be permanently slapped with trade sanctions. In January the U.S. Commerce Department ruled China producers were dumping their products in the United States and should be hit with anti-dumping duties averaging 25.67 percent. In November the Commerce Department determined China was illegally subsidizing their pipe products and imposed tariffs from zero to 264 percent with the average being 16.59 percent.
While Bolt thought the hearing went well, he said it was clear commission members were concerned about making any trade sanctions permanent.
“The commission was concerned if they made the sanctions permanent whether there would be enough U.S. pipe production to serve the American market again,’’ Bolt said. “Every company told them they have excess capacity that’s ready to serve the American market.’’
Bolt said he was perplexed that ITC members asked pipe executives if they were buying steel now to offset an anticipated steel price hike in the near future.
“Commission members should realize these are pipe companies, not hedge investors,’’ Bolt said.
U.S. Reps. Jason Altmire, McCandless, D-4th District, and Phil English, Erie, R-3rd District also testified at the hearing.
“It is critical for the Commission to act today and recognize the adverse impact of China’s reckless dumping on this industry,” English said. “We must grant them necessary relief so they can have the opportunity to make the investments they need to revive their competitiveness and our local economies.”
Altmire told ITC members Wheatland Tube, owned by The John Maneely Co., can compete with the Chinese if the company were given a level playing field.
“Let me be perfectly clear: U.S. producers would have a vast competitive advantage over Chinese suppliers if the latter were not engaging in unfair trade,’’ Altmire said. “The John Maneely Co., and indeed the U.S. industry as a whole, has undertaken annual investments to upgrade and streamline production and sales. Our pipe and tube producers have good relations with their hot-rolled and other input suppliers. Given a level playing field, our industry can out-compete anyone in the world.’’
In using U.S. industry figures, Chinese imports of circular standard pipe surged from 382,000 tons in 2005 to 748,000 tons in 2007.
A final ITC decision is expected in mid-June.