US probes PH for ‘dumping’ cheap steel pipes

The Philippines and four other countries are being investigated for allegedly “dumping” cheap steel pipes in the United States, which local manufacturers there claimed have affected profits.

In a notice, the US Department of Commerce said it has initiated anti-dumping duty (AD) investigations against the Philippines, Oman, Pakistan, United Arab Emirates, and Vietnam on their circular welded carbon-quality steel pipe exports.

“Dumping” occurs when a product is sold to the US below its fair value.

The probe was initiated after the agency received complaints from American firms Bull Moose Tube Co.  from Chesterfield, Missouri; Exltube based in Kansas City, Missouri; Wheatland Tube  from Chicago, Illinois; and Western Tube and Conduit from Long Beach, California.

According to the US Department of Commerce, existing laws there provide American businesses and workers with a transparent and internationally accepted mechanism to be able to seek relief from market-distorting effects caused by injurious dumping and unfair subsidization of imports. This allows local firms to compete on a level playing field.

The US International Trade Commission (ITC) is expected to release its preliminary injury determination on or before Dec. 14, 2015.

If the ITC sees there is reasonable indication that the imports “materially injure or threaten material injury to the domestic industry,” a formal investigation will proceed.

US data showed the Philippines exported around 25,800 metric tons (MT), valued at $18.58 million, in 2014. While the value of the imports was lower by 8.6 percent compared to the previous year, the volume was slightly higher by 1.6 percent from the 25,400 MT that the Philippines exported in 2013.