Letter to the Honorable Francisco J. Sánchez, Under Secretary of Commerce for International Trade

Letter

Dear Mr. Under Secretary:

The Commerce Department announced last August proposed measures to strengthen the enforcement of U.S. trade laws − focused in particular on illegal import practices involving China and other nonmarket economy ("NME") countries. One measure the Department proposed is to adjust the U.S. price used to calculate the margin of dumping in NME cases to account for export taxes, just as in cases involving market economy countries. Failure to make this adjustment understates the margin of dumping calculated, to the detriment of U.S. producers and workers.

In January, the Department published this proposed change in practice and requested comments. The comments were submitted in February. The Steel Manufacturers Association, the Committee to Support U.S. Trade Laws, the United Steel Workers, Globe Metallurgical, and others supported the proposed change.

It has now been nearly a year since the Department first announced its intention to make this important change in practice. During that time, the Department is continuing to apply a practice that generates distorted and understated dumping margins. Moreover, we understand that the proposed change will apply prospectively. As a result, as time passes and new investigations and reviews are initiated, more and more cases go forward in which the Department continues to calculate the margin of dumping without making this essential adjustment.

The failure to implement this change in a timely manner is hurting U.S. manufacturing companies and workers in our states at a time when job retention and creation remains challenging to employers.

For these reasons, we strongly urge you to implement this proposed change in practice without further delay.