Steel imports up 14.2% in JulyRecently, the WTO’s Appellate Body upheld a compliance panel’s ruling that the US failed to implement an earlier WTO ruling against the practice of zeroing. [Steel products were involved in the dispute.]  The latest finding on zeroing will allow the Japanese Government to proceed with its WTO request to impose $248.5 million in retaliation against US exports to Japan. The EU, India, Mexico, China and others joined Japan in this case. The EU and Mexico have already begun the process of obtaining approval from the WTO to impose retaliatory tariffs against US exports for similar zeroing rulings. Zeroing is a technical administrative anti-dumping issue that inflates anti-dumping margins by ignoring sales above normal value in the calculation of anti-dumping margins. “This is the 15th ruling that the WTO has made against the US and 17 in total against the practice of zeroing, which unfairly inflates anti-dumping margins. Over two administrations, the US has steadfastly first fought against the rulings, ignored the findings and then refused to implement the rulings. There is no justification for further delay in complying with the WTO ruling, all the issues have been adjudicated and the US position is clearly seen by our trading partners to be a violation of our international obligations” said David Phelps, president, AIIS (American Institute for International Steel). “By inflating anti-dumping margins zeroing adds costs to US manufacturing companies trying to compete in the global marketplace and endangers US jobs. [Steel consuming industries, including construction, equipment, autos, auto parts, etc. employ 60 jobs for every steel-producing job.]  Now, with the potential of retaliation against hundreds of millions of dollars of US exports, other American companies will find their business and jobs at risk if the US Government does not comply with the findings of the WTO. It is time to end the discussion about zeroing and eliminate this pernicious practice. The Department of Commerce has the authority to make the change itself and should do so – legislation is not required,” concluded Phelps. STEEL IMPORTS INCREASE 14.2% Imports increased in July over June by 14.2% based on preliminary reporting. “The increase in imports reflects the tentative improvement in the steel market this summer,” said David Phelps. “With steel producers from Canada and Mexico reacting as quickly to improved market conditions as domestic producers, their exports to the US represented over 50% of the increase in tonnage in July. With some domestic steel companies plans to restart their furnaces delayed, imports of semifinished products were critical to their ability to service the improved market and therefore semis posted the largest product increase in July compared to June. These data show that the US steel market is finally beginning to emerge from the recession. Of course the big question, still unanswered, is whether the improvement in the US market is merely a re-stocking of inventory or reflects real improvement in demand and can be sustained,” concluded Phelps. Total Steel imports in July 2009 were 984,000 tons compared to 862,000 tons in June 2009, a 14.2% increase, and a 66.2% decrease compared to July 2008. According to year-to-date figures, imports decreased 49% compared to 2008 or from 18.9 million tons in 2008 to 9.6 million tons in 2009. The data show that imported semifinished products decreased by 85% in July 2009 as compared to July 2008. For the year-to-date period, semifinished imports decreased from four million tons in 2008 to 667,000 tons in 2009, an 83.1% decrease, based on preliminary reporting. (AIIS)