Specifically, the Wind Tower Trade Coalition (WTTC) has asked the U.S. Commerce Department and International Trade Commission (ITC) to conduct antidumping investigations into Chinese and Vietnamese imports of utility-scale wind towers, and a countervailing duty investigation into Chinese imports of utility scale wind towers. The petitions assert dumping margins of 64.37 percent for China and 59.11 percent for Vietnam.
Dumping occurs when a foreign company sells a product in the United States at less than fair value, while countervailing subsidies are financial assistance from foreign governments provided to foreign manufacturers that unfairly benefit the production, manufacture or export of goods in that country.
In the United States, utility-scale wind towers are produced at plants located in California, Colorado, Iowa, Illinois, Nebraska, North Dakota, Tennessee, Texas, Washington, and Wisconsin. The coalition claims that as a result of the dumping and subsidies U.S. wind tower makers are financially harmed.
“The Chinese and Vietnamese industries are using unfair pricing practices to capture critical sales from the U.S. industry. As a result, the industry and its workers have been injured by these imports of unfairly-priced imports,” said Alan H. Price, chair of the International Trade Practice at Wiley Rein LLP and counsel for the WTTC. “Additionally, the Chinese government has used, and continues to use, unprecedented levels of subsidization to push wind towers into the U.S. market.”
Price noted the Office of the U.S. Trade Representative reached a similar conclusion with respect to one such subsidy program, and upon request for WTO Dispute Settlement Consultations, the Chinese government revoked this program. Other wind industry-related subsidy programs remain in place, providing substantial benefits to Chinese wind tower producers, he said.
The Commerce Department and the ITC should initiate antidumping and countervailing duty investigations within three weeks of the date of filing of these petitions on Dec. 29. The ITC’s preliminary injury determination is expected in February, and the Commerce Department is expected to make its preliminary antidumping and countervailing determinations within six months of initiation. A final determination is due in nine to 13 months.
“Antidumping and countervailing duty investigations are powerful tools for U.S. producers that have been injured by unfairly priced imports,” Price said. “A successful outcome in this case will not only benefit U.S. manufacturers, but it will save numerous American jobs.”
