U.S. Department of Commerce Initiates Antidumping Duty and Countervailing Duty Investigations of Imports of Standard Steel Welded Wire Mesh from Mexico
For Immediate Release
July 21, 2020
Contact: ITA Office of Public Affairs
WASHINGTON – Today, the U.S. Department of Commerce announced the initiation of new antidumping (AD) and countervailing duty (CVD) investigations to determine whether imports of standard steel welded wire mesh from Mexico are being dumped in the United States, and to determine if producers are receiving unfair subsidies.
The petitions were filed by Insteel Wire Products Company (Mount Airy, N.C.), Mid-South Wire Company (Nashville, Tenn.), National Wire LLC (Conroe, Texas), Oklahoma Steel & Wire Co. (Madill, Okla.), and Wire Mesh Corp. (Houston).
In the AD investigation, Commerce will determine whether imports of standard steel welded wire mesh from Mexico are being dumped in the U.S. market at less-than-fair value. The alleged dumping margins range from 64.07 to 152.68 percent.
In the CVD investigation, Commerce will determine whether Mexican producers of standard steel welded wire mesh are receiving unfair government subsidies. Commerce will investigate 16 subsidy programs, including preferential lending, tax programs, tariff exemptions, grants, and regional subsidies.
If Commerce makes affirmative findings in these investigations, and if the U.S. International Trade Commission (ITC) determines that dumped and/or unfairly subsidized imports of standard steel welded wire mesh from Mexico materially injure or threaten material injury to the U.S. industry, Commerce will impose duties on those imports in the amount of dumping and/or unfair subsidization found to exist.
The 2019, imports of standard steel welded wire mesh from Mexico were valued at approximately $46.7 million.
During Commerce’s investigations into whether imports of standard steel welded wire mesh from Mexico are being dumped and/or unfairly subsidized, the ITC will conduct its own investigation into whether the U.S. industry and its workforce are being injured by such imports. The ITC will make its preliminary determination by August 14. If the ITC preliminarily determines that there is a reasonable indication of material injury or threat of material injury, then Commerce’s investigations will continue, with the preliminary CVD determination scheduled for September 23, and the preliminary AD determination scheduled for December 7, unless these deadlines are extended.
If Commerce preliminarily determines that dumping and/or unfair subsidization is occurring, it will instruct U.S. Customs and Border Protection to start collecting cash deposits from all U.S. companies importing standard steel welded wire mesh from Mexico, as appropriate.
Final determinations by Commerce in these cases are scheduled for December 7, for the CVD investigation, and February 22, 2021, for the AD investigation, but these dates may be extended. If Commerce finds that products are not being dumped or unfairly subsidized, or the ITC finds no injury to the U.S. industry, then the investigations will be terminated, and no duties will be applied.
The strict enforcement of U.S. trade law is a primary focus of the Trump administration. Since the beginning of the current administration, Commerce has initiated 273 new AD and CVD investigations – a 250 percent increase from the comparable period in the previous administration.
The AD and CVD laws provide American businesses and workers with an internationally accepted mechanism to seek relief from the harmful effects of unfair pricing and unfair subsidization of imports into the United States. Commerce currently maintains 531 antidumping and countervailing duty orders which provide relief to American companies and industries impacted by unfair trade.
Foreign companies that price their products in the U.S. market below the cost of production or below prices in their home markets are subject to AD duties. Foreign companies that receive financial assistance from foreign governments that benefits the production of goods, and is limited to specific enterprises or industries, or is contingent either upon export performance or upon the use of domestic goods over imported goods, are subject to CVD duties.
The U.S. Department of Commerce’s Enforcement and Compliance unit within the International Trade Administration is responsible for vigorously enforcing U.S. trade laws and does so through an impartial, transparent process that abides by international rules and is based on factual evidence provided on the record.