Commerce Preliminarily Finds Unfair Dumping of Steel Threaded Rod from China

October 6, 2008

On October 2, the Department of Commerce (Commerce) announced its affirmative preliminary determination in the antidumping duty investigation on imports of steel threaded rod from the People’s Republic of China (China). Dumping occurs when a foreign company sells a product in the United States at less than fair value.

Commerce preliminarily determined that exporters/producers from China have sold steel threaded rod in the United States at 77.85–206.00% below normal value.

Mandatory respondents RMB & IFI and Ningbo Yinzhou, received preliminary dumping rates of 77.85% and 176.57%, respectively. Nine Chinese exporters received a separate preliminary rate of 91.22%. All other exporters will receive the China-wide rate of 206.00%.

As a result of this preliminary determination, Commerce will instruct U.S. Customs and Border Protection to collect a cash deposit or bond based on the preliminary rates.

The merchandise covered by this investigation includes steel threaded rod, which is certain threaded rod, bar, or studs, of carbon quality steel, having a solid, circular cross section, of any diameter, in any straight length, that have been forged, turned, cold-drawn, cold-rolled, machine straightened, or otherwise cold-finished, and into which threaded grooves have been applied. In addition, the steel threaded rod, bar, or studs subject to this investigation are non-headed and threaded along greater than 25% of their total length. A variety of finishes or coatings may be applied to the merchandise.

Steel threaded rod is currently classifiable in Chapter 73 of the Harmonized Tariff Schedule of the United States (HTSUS) under subheading 7318.15.5060. While the HTSUS subheading is provided for convenience and customs purposes, Commerce’s written description of the scope of this investigation is final and conclusive.

The following are excluded from the scope of the investigation: (a) threaded rod, bar, or studs which are threaded only on one or both ends and the threading covers 25% or less of the total length; and (b) threaded rod, bar, or studs made to American Society for Testing and Materials (ASTM) A193 Grade B7, ASTM A193 Grade B7M, ASTM A193 Grade B16, or ASTM A320 Grade L7.

From 2005 to 2007, imports of steel threaded rod from China increased 9.8% by volume; they were valued at an estimated $72.3 million in 2007.

Commerce is currently scheduled to make its final determination in December 2008. If Commerce makes a final affirmative determination, and the U.S. International Trade Commission makes a final determination that imports of steel threaded rod from China materially injure, or threaten material injury to, the domestic industry, Commerce will issue an antidumping order.

For a fact sheet, visit the International Trade Administration’s Web site.

United States and Uruguay Sign Two Protocols to Trade and Investment Framework Agreement

October 6, 2008

On October 2, the governments of the United States and Uruguay signed two protocols to their bilateral Trade and Investment Framework Agreement (TIFA). The protocols were signed by Uruguayan Minister of Foreign Affairs Gonzalo Fernández and Assistant U.S. Trade Representative Everett Eissenstat.

The two protocols cover substantive commitments in the areas of trade facilitation and public participation in trade and environment. Both governments pledged continued cooperation in these area.

“I am glad that today we signed two protocols on trade facilitation and trade and environment under the TIFA and a Memorandum of Understanding to advance cooperation on renewable energy and energy efficiency yesterday,” saidMinister of Foreign Affairs Gonzalo Fernández. “We are looking forward to continuing our work.”

“I am pleased that we were able to conclude these protocols,” said Assistant U.S. Trade Representative Everett Eissenstat. “Our joint commitment to strengthening our economic relations continues to yield results. These protocols represent a significant concrete step in deepening our bilateral economic relationship.”

In addition to concluding the two protocols, the United States and Uruguay signed a memorandum of understanding to advance cooperation on renewable energy and energy efficiency.

The United States and Uruguay signed the United States-Uruguay TIFA on January 25, 2007. The TIFA established the United States-Uruguay Trade and Investment Council (TIC) and serves as a mechanism to further deepen the trade and investment dialogue.

The TIFA contains an annex that established a work program calling for the two governments to address such matters as liberalization of bilateral trade and investment, intellectual property rights, regulatory issues, information and communications technology and electronic commerce, trade facilitation, trade and technical capacity building, trade in services, government procurement, and cooperation on sanitary and phytosanitary measures. The annex provides for the TIC to add other matters to the work program. Ongoing dialogue under the TIFA work program may result in the conclusion of additional protocols in the future.

Since the TIFA entered into force, the TIC has met twice, in April 2007 and April 2008.  Last month, Ambassador Susan C. Schwab and Minister Fernández agreed that the United States and Uruguay will convene another meeting of the TIC by November 2008.

Commerce Deputy Secretary to Host U.S.-Georgia Business Summit in Tbilisi

October 6, 2008

U.S. Commerce Deputy Secretary John Sullivan will host the U.S.-Georgia Business Summit in Tbilisi, Georgia, Oct. 27, 2008, on the occasion of a Commerce Department-certified trade mission to Georgia on Oct. 26-28, 2008. U.S. and Georgian business leaders and senior officials will attend the summit on Monday, Oct. 27, which will highlight U.S. resources for expanding trade and investment with Georgia and opportunities in the country’s growth sectors. Summit participants are slated to include Georgian President Mikheil Saakashvili; Georgian Prime Minister Vladimer Gurgenidze; President and CEO of the Overseas Private Investment Corporation Robert Mosbacher, Jr.; and Director of the U.S. Trade and Development Agency Larry Walther.

“The World Bank ranks Georgia 15th out of 181 countries for ease of doing business,” Sullivan said. “This emerging economy offers U.S. businesses the opportunity to expand into a dynamic and business-friendly market eager to work with U.S. partners.”

The trade mission is being organized by the America-Georgia Business Council and the American Chamber of Commerce in Georgia and is certified by the U.S. Department of Commerce. U.S. firms participating in the trade mission will also attend the U.S.-Georgia Business Summit. During the trade mission, participants also have an opportunity to explore new trade and investment opportunities, have one-on-one meetings with local companies and learn about how to contribute to Georgia’s reconstruction.

“By combining the Commerce-led U.S.-Georgia Business Summit with an America-Georgia Business Council trade mission, American companies will be given the opportunity to reach out to both business and government leaders— building bridges that will contribute to mutual security and prosperity,” Sullivan said. “This is a win-win opportunity to expand our trade relationship with our Georgian partners.”

For further information about the U.S.-Georgia Business Summit, contact Sean Timmins at Sean.Timmins@mail.doc.gov or visit www.export.gov/georgiasummit. For more information on the trade mission to Georgia, visit www.agbdc.com.

Federal Maritime Commission Releases 2010-2015 Strategic Plan

October 6, 2008

The Federal Maritime Commission (FMC) issued its 2010-2015 Strategic Plan on September 25. This plan differs from the Commission’s 2003–2008 Strategic Plan in several ways. First, it replaces the five former strategic goals contained in the earlier plan with three goals in an attempt to better capture the agency’s focus. Second, it sets goals and objectives which directly link to the 2010 Annual Plan and will continue to do so for subsequent annual plans through 2015. Third, it contains targets and measures linked to objectives via strategies. Fourth, the plan drives the agency’s budgetary process via an organizational linkage table.

Strategic Goal 1

Maintain an efficient and competitive international ocean transportation system.

  • Objective 1: Identify and take action to address substantially anti-competitive conduct or unfavorable trade conditions in U.S. trades
    1. Review, on a regular, on-going basis, the data and information provided in standard reports and special reporting measures to assess the existence or likelihood of substantially anti-competitive conduct or unfavorable trade conditions.
    2. Initiate meetings with representatives of the FMC’s various stakeholder industries to help determine whether anti-competitive behavior or unfavorable trade conditions exist in U.S. trades.
    3. Conduct research studies on current competition issues with respect to U.S. trades.
    4. Actively monitor for and record the presence of all foreign controlled carriers in U.S. trades, and regularly review their pricing practices.
    5. Assure competitive conditions in the U.S. foreign oceanborne trades by working with agreement parties on an informal basis to negotiate changes in agreements that raise competitive concerns.
    6. Make rules and regulations affecting shipping in the foreign trade not in conflict with law in order to adjust or meet general or special conditions unfavorable to shipping in the foreign trade.

Strategic Goal 2

Protect the public from unlawful, unfair and deceptive ocean transportation practices and resolve shipping disputes.

  • Objective 1: Identify and take action to end unlawful, unfair and deceptive practices
    1. Receive and respond to complaints regarding egregious violations and practices.
    2. Review tariffs for accessibility and accuracy.
    3. Investigate allegations of unlawful, unfair and deceptive practices.
    4. Efficiently prosecute alleged violations of the Shipping Act.
  • Objective 2: Prevent public harm through licensing and financial responsibility requirements
  • Objective 3: Enhance public awareness of agency resources, remedies and regulatory requirements through education and outreach
  • Objective 4: Impartially resolve international shipping disputes through alternative dispute resolution and adjudication

Strategic Goal 3

Advance agency objectives through high-performance leadership and efficient stewardship of resources.

  • Objective 1: Ensure performance of agency programs through performance-oriented management and planning
  • Objective 2: Allocate technological, financial and human resources efficiently and effectively toward support of agency programs

For more information on the Strategic Plan, please visit the FMC Web site.

CBP Launches Interactive WHTI Travel Widget

October 6, 2008

On October 2, U.S. Customs and Border Protection (CBP) announced a desktop widget aimed at assisting travelers in preparing for their trip.

The automated widget provides a trip countdown timer and weather at the traveler’s destination and reminds the user to obtain appropriate travel documents, as required under Western Hemisphere Travel Initiative. U.S. and Canadian citizens entering the United States from Canada, Mexico, Bermuda or the Caribbean must present a passport or other WHTI-compliant document beginning June 1, 2009.

“We are using a wide range of media vehicles, in addition to television and magazine ads, to ensure that all segments of the population are familiar with the travel document requirements under WHTI,” said CBP Assistant Commissioner Thomas S. Winkowski. “A digital strategy component allows CBP to reach audiences that are increasingly using the Internet as their source of news and information, especially related to travel. The widget, because it sits on the computer desktop, provides an ongoing and interactive reminder to travelers to get appropriate travel documents.”

The widget is designed so that anyone making travel plans on the Internet can take advantage of the trip countdown and weather functions. It is available to download on the WHTI’s Web site.

Preliminary Data Show Steel Imports Decreased in August 2008

October 6, 2008

On September 23, the U.S. Census Bureau announced that preliminary August steel imports were $3.0 billion (2.1 million metric tons); preliminary July totals were $3.4 billion (2.6 million metric tons).

The change in steel imports, based on metric tonnage, reflected decreases primarily in blooms, billets, and slabs. Monthly changes in steel imports reflected decreases primarily with Canada. An increase occurred primarily with China.

“Strong demand and tight supplies both in the US and international markets in the April-May time frame slowed import ordering from non-NAFTA sources.  Moreover, international and domestic steel market prices hit their peaks during this time.  Imports from NAFTA sources represented the largest declines, with imports from Canada falling by nearly 20% and from Mexico 27% from July to August, reflecting much more closely than non-NAFTA sources (which arrive after a 3-5 month lag) coincident US market conditions in August,” said Dave Phelps, president, American Institute for International Steel (AIIS).

The year-to-date final statistics through July 2008 showed steel imports of 17.1 million metric tons, last year, steel imports stood at 19.2 million metric tons through July 2007. The largest commodity decreases were in reinforcing bars, wire rods, cold rolled sheets, and galvanized hot dipped sheets and strip. The largest commodity increases were in oil country goods and line pipe greater than 16 inches in diameter. The largest country decreases were with China and Brazil. The largest country increase was with Canada.

“Increased arrivals from China reflected the energy market’s insatiable demand for pipe and tube products.  Demand for many of those products remains in short supply, according to the most recent AIIS monthly survey of importers,” Phelps concluded.

The data released are preliminary and are likely to change somewhat between now and the release of the final August statistics next month. For further details, visit the U.S. Census Bureau Web site.

CBP Announces Global Entry Kiosks Are Now Available at LAX, Miami, Chicago, Atlanta

October 6, 2008

On October 2, U.S. Customs and Border Protection (CBP) announced that Global Entry kiosks are now available at four additional international U.S. airports.

Approved members returning to the United States use the Global Entry kiosk as an alternative to the regular passport control line. At the kiosk, Global Entry members will activate the system by inserting their passport or U.S. permanent resident card into a document reader. The kiosk will direct travelers to provide digital fingerprints and will compare that biometric data with the fingerprints on file.

Global Entry travelers will be prompted to answer declaration related questions on the kiosk’s touch-screen. A transaction receipt will be issued upon completion that must be presented to CBP officers prior to leaving the inspection area.

The program’s expansion to Los Angeles International, Hartsfield-Jackson Atlanta International, Chicago O’Hare International, and Miami International airports was announced on August 12. The enrollment centers at these sites are expected to open later this month. Global Entry applicants will be able to complete their interview and provide their biometric data at these sites.

Global Entry kiosks also will be installed at additional terminals at John F. Kennedy (JFK) International Airport October 17.

The Global Entry pilot program began June 6 at JFK International, George Bush Intercontinental and Washington Dulles International airports. To date, approximately 3,500 members have already enrolled and over 1,100 Global Entry members have used kiosks at the three existing pilot locations. Global Entry is open to U.S. citizens or lawful permanent residents.

For more information on CBP trusted traveler programs, or for an application to enroll in the Global Entry pilot program, visit the Global Entry’s Web site.

Senate Passes U.S.-India Nuclear Cooperation Agreement

October 3, 2008

On October 1, the U.S. Senate approved the United States-India Agreement for Cooperation concerning peaceful uses of nuclear energy, by a vote of 86-13, with one not voting. The House of Representatives had approved the bill (H.R. 7081) on September 27, by a vote of 298-117, with 1 present (Roll Call 662).

On the operational level, ratification of Section 123 of the U.S. Atomic Energy Act, referred to as the 123 Agreement, sets the parameters for U.S. Industry participation in India’s civil nuclear build-out, but on a symbolic level represents a historic breakthrough, shoring up a durable foundation upon which U.S.-India relations will flourish and America’s partnership will deepen with the world’s largest free-market democracy.

“This bill is a victory for U.S.-India relations, which will increase the prospect for stability and progress in South Asia,” said Joseph R. Biden, Jr. (D-Del.), Chairman of the Senate Foreign Relations Committee. “It has become cliché to speak of the U.S. India relationship as a bond between the world’s oldest democracy and the world’s largest democracy, but it’s also a fact. Shared political values are the foundation for our relationship, a firm belief in the dignity of man and the consent of the governed.”

Secretary of States Condoleezza Rice applauded the agreement, commenting, “I applaud Congressional approval last evening of the U.S.-India Agreement for Cooperation Concerning Peaceful Uses of Nuclear Energy (123 Agreement). This would not have been possible without strong bipartisan support and close cooperation from the Congress over the past three years. I especially appreciate the support of the leadership of both parties to expedite approval of the initiative in recent weeks. ”

“The benefits will be many and the impact profound, beckoning a new era in U.S.-India relations,” said Ron Somers, President of the U.S.-India Business Council, the Washington-based industry association comprised of 300 of America’s top U.S. companies committed to a long-term partnership with India.

“By enabling U.S.-India civil nuclear cooperation, India not only joins the international nuclear non-proliferation mainstream, but now has the opportunity to achieve energy security, while protecting the global environment. A massive scope for commercial opportunity between U.S. and Indian companies will also be the result, valued at more than $150 billion over the next 30 years, spurring a revival of the nuclear power industries of both countries that will create as many as a quarter million high-tech U.S. jobs for generations to come,” he noted.

The Congressional endorsement of the civil nuclear accord concludes an effort that began on July 18, 2005, when U.S. President George W. Bush and Indian Prime Minister Dr. Manmohan Singh announced the U.S.-India civil nuclear cooperation initiative.

“Passage of today’s legislation clears the way for U.S. companies to participate in India’s civil nuclear opportunity,” Mr. Somers said. “This sets U.S.-India relations on a course that will shape the democratic and economic destiny of the 21st Century.”

USTR Announces Agreement on Extension of Time for Costa Rica to Join the CAFTA-DR

October 3, 2008

On October 1, a multi-party agreement was established that will provide more time for Costa Rica to join the Dominican Republic-Central America-United States Free Trade Agreement (CAFTA-DR)

“The people of Costa Rica approved the CAFTA-DR in a national referendum in October 2007,” U.S. Trade Representative (USTR) Susan C. Schwab stated. “The referendum was a welcome step. Since then Costa Rica has been working hard to adopt the measures required to carry out its obligations under the CAFTA-DR. While it has already made considerable progress, the Costa Rican government needs more time to adopt necessary implementing legislation before the CAFTA-DR can enter into force for Costa Rica. We don’t want Costa Rica to be left behind. Today’s agreement will give Costa Rica until January 1, 2009 to complete its implementing process. It is time for Costa Rica to join its Central American partners and the Dominican Republic in seizing the economic opportunities provided by the CAFTA-DR.”

She continued, “The Administration is committed to ensuring that our free trade agreement partners take the steps necessary to meet their obligations. We will continue to work closely with the Costa Rican government to ensure it completes the appropriate implementing measures.”

Costa Rica, the Dominican Republic, El Salvador, Guatemala, Honduras, Nicaragua, and the United States signed CAFTA-DR on August 5, 2004. CAFTA-DR is now in force for all signatories, except Costa Rica. The United States and El Salvador put CAFTA-DR into force on March 1, 2006. The agreement entered into force for Honduras and Nicaragua on April 1, 2006, for Guatemala on July 1, 2006, and for the Dominican Republic on March 1, 2007.

CAFTA-DR establishes a 2-year period for signatory countries to join the agreement after it first takes effect. A country may join after the two-year deadline, but only if the countries that have already joined agree. That period closed on March 1, 2008. In February 2008, the six current CAFTA-DR countries agreed to extend this period until October 1, 2008. The October 1 agreement grants Costa Rica until January 1, 2009, to join.

United States and Uruguay Sign Memorandum of Understanding to Advance Cooperation on Renewable Energy and Energy Efficiency

October 3, 2008

U.S. Assistant Secretary of State for Western Hemisphere Affairs Thomas A. Shannon and Uruguayan Foreign Minister Gonzalo Fernández signed a memorandum of understanding (MOU) on October 1 to advance bilateral cooperation on renewable energy and energy efficiency.

The MOU highlights the fundamental role energy plays in development, and commits both governments to promote exchanges, research and development, and stimulate private sector investment and business collaboration on renewable energy and energy efficiency. The agreement also creates a binational working group that will review energy related issues.

The ministers noted that the MOU builds on existing bilateral cooperation in the areas of trade, economic development, and science and technology. This includes interaction between U.S. academic institutions and Uruguayan government officials and scientists in the area of biofuels, as well as the support of the U.S. Departments of State and Agriculture for several U.S. biofuels experts to visit Uruguay to promote research opportunities and academic exchanges.