Senator Rob Portman Press Release:

July 29, 2013

Portman and Brown Call on International Trade Commission to Defend Ohio Steel Pipe Producers from Illegal Foreign Trade Practices

Portman and Brown Effort Follows Last Week's Commerce Department Decision to Probe Nine Countries Accused of Illegally Selling Steel Pipe

Washington, D.C. – On behalf of Ohio workers and businesses, U.S. Senators Rob Portman (R-OH) Sherrod Brown (D-OH) and today called on the U.S. International Trade Commission (ITC) to protect domestic producers of Oil Country Tubular Goods (OCTG) from foreign competitors that use unfair and illegal trade practices. Their effort follows last week’s decision by the U.S. Department of Commerce (DOC) to open a probe into allegations that nine countries are illegally selling steel pipe at unfairly low prices in the United States. 

“Ohio-based companies that produce Oil Country Tubular Goods (OCTG) support many good-paying jobs in our state,” Portman said. “If the ITC does not stand up for these American manufactured goods and punish foreign companies who are flooding our markets with unfairly imported cheap products, our businesses and thousands of American workers are at risk. American manufactured goods must be allowed to compete with their global competitors on a level playing field.”

“Domestic steel pipe producers are being crippled by an onslaught of foreign competitors illegally dumping imports in the United States,” Brown said. “The International Trade Commission must commit to Ohio’s workers and businesses and crack down on countries that sell their products at unfair prices. As our trade deficit widens, leveling the playing field is the only way to protect local jobs, and in the future, create them.”   

OCTG are used for domestic oil exploration, particularly in the shale industry, and are produced in Ohio by companies including U. S. Steel in Lorain, Wheatland Tube Company in Warren, Vallourec Star in Youngstown, and TMK IPSCO in Brookfield. Each is among the plaintiffs accusing South Korea, India, Vietnam, the Philippines, Saudi Arabia, Taiwan, Thailand, Turkey, and Ukraine of unfair and illegal trade practices.

OCTG imports from these countries have increased from 840,000 net tons in 2010 to more than 1,770,000 net tons in 2012, with the number continuing to rise. Despite today’s historically high level of demand for steel pipe, its domestic industry in the United States has deteriorated due to imports, which data shows, have consistently and substantially undersold the market. This has resulted in petitions that allege dumping margins of at least 30 percent, and in most cases, significantly more. 

Portman and Brown have long championed the American steel industry and fought to ensure it can compete fairly in the international trade market. Last month, Portman and Brown applauded the DOC preliminary ruling on a petition in favor of defending companies operating in Ohio from illegally traded steel pipe by ensuring antidumping duties (AD) and countervailing duties (CVD) continue to be levied on illegally subsidized and intentionally undersold Chinese steel pipe imports. The announcement followed efforts by Portman and Brown to urge the DOC to protect companies operating in Ohio from unfair and illegal Chinese trade practices.

Earlier in May, Portman and Brown applauded U. S. Steel’s announcement that it would consider expanding its steeling operations in Lorain. Brown’s and Portman’s efforts were vital to ensuring U. S. Steel was provided necessary relief from Chinese steel pipe imports, and as a result, could maintain its facility in Lorain or potentially expand its operations.

In December 2012, Portman and Brown led a group of senators in urging the DOC to maintain AD and CVD on Chinese steel pipe imports.

Portman and Brown’s letter can be read in its entirety here.