President Determines to Not Provide Section 421 Import Relief Against Certain Ductile Iron Waterworks Fittings from China
On March 3, 2004, President Bush determined to not provide import relief to the U.S. pipe fittings industry with respect to certain ductile iron waterworks fittings even though the International Trade Commission (ITC), in its product-specific Section 421 market disruption investigation of such products imported from China, had proposed remedies in which additional duties would be implemented for a three-year period.
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President Bush stated that providing such relief for the U.S. pipe fittings industry is not in the U.S.' national economic interest.
Bush Finds Remedy Would Cause Import Shifts, Not Increase Demand for Domestic Products, Etc.
According to the President, among other things, the facts of this case indicate that imposition of the ITC's remedies or any other import relief available under section 421 would be ineffective because imports from third countries would likely replace curtailed Chinese imports. The President asserted that the switch to third country imports could occur quickly because the major U.S. importers already import substantial quantities from countries such as India, Brazil, Korea, and Mexico.
Moreover, the President states that because importers' existing inventories of imports will likely cover demand for approximately 6 to 12 months from the imposition of import relief, a switch from China to alternative import sources would not likely lead to a significant additional demand for domestically produced pipe fittings, even accounting for a time lag in making that switch. (See ITT's Online Archives or 01/07/04 news, 04010725, for BP summary of the ITC's remedy proposals.)
(See ITT's Online Archives or 01/29/03 and 04/29/03 news, 03012930 and 03042930, for BP summaries of the President's previous determinations not to provide Section 421-related relief to the U.S. pedestal actuator and steel wire garment hanger industries, with links to explanatory summaries of Section 421 market disruption investigations.)
Presidential Memorandum (dated 03/03/04) available at http://www.whitehouse.gov/news/releases/2004/03/20040303-12.html