U.S. ITC Makes Affirmative Preliminary Injury Determination in Antidumping and Countervailing Duty Case Against Imports of Rebar from Japan, Taiwan, and Turkey

November 3, 2016

Washington, DC—The U.S. International Trade Commission (ITC) preliminarily determined that there is a reasonable indication that imports of steel concrete reinforcing bar (rebar) from Japan, Taiwan, and Turkey have materially injured the U.S. rebar industry. Six out of six Commissioners voted in the affirmative. 

The ITC determination is in response to a September 20, 2016 petition filed by the Rebar Trade Action Coalition (RTAC), a coalition of producers of rebar in the United States. The case alleges that unfairly dumped rebar from Japan, Taiwan, and Turkey, and subsidized rebar from Turkey are injuring the U.S. industry and threatening the U.S industry with additional injury.

“This ruling confirms the injurious effects that Japanese, Taiwanese, and Turkish imports of rebar are having on the U.S. industry,” said Alan H. Price, chair of Wiley Rein’s International Trade Practice and lead counsel to the RTAC. “Producers in each of these countries are using unfair pricing practices to steal market share from domestic producers,” he said. “As a result, the domestic rebar industry has been forced to lower prices and has experienced significant declines in profitability.”

The ITC’s affirmative preliminary injury determination paves the way for the U.S. Department of Commerce (Commerce) to continue moving forward with its investigations. Commerce is expected to issue preliminary antidumping and countervailing duty determinations no later than the first half of next year. If Commerce reaches an affirmative preliminary determination in these cases, provisional antidumping and countervailing duties will be collected based on the preliminary margins calculated.

BACKGROUND

Prior to today’s vote, on October 11, 2016, the U.S. Department of Commerce (Commerce) initiated four separate investigations of imports of rebar from Japan, Taiwan, and Turkey.  Commerce found that there was reason to believe that rebar producers in these countries were dumping their product into the United States at margins ranging from 86.12 percent to 206.17 percent.  Commerce is also investigating subsidy programs offered by the Turkish government in support of its rebar industry. 

The RTAC petitioned Commerce and the ITC to investigate rebar imports from Japan, Taiwan, and Turkey following a recent surge in imports from all three countries, as illustrated below. 

Year	2013	2014	2015	Percent Increase
Volume (short tons)	742,313	1,081,702	1,933,096	160.4%

Imports have continued to remain strong in 2016 and are on the rise.  

The RTAC is composed of the following domestic producers: Bayou Steel Group, Byer Steel Group, Inc., Commercial Metals Company, Gerdau, Nucor Corporation, and Steel Dynamics, Inc.

For more information, please contact Alan H. Price at 202.285.2079 or aprice@wiley.law.