Commerce Department adopts Portman-backed measure ensuring American workers protected against unfair Chinese trade

Following U.S. Senator Rob Portman’s (R-OH) recommendation, the U.S. Department of Commerce agreed to change the way it calculates dumping margins to more accurately gauge unfair Chinese tax policies that hurt Ohio companies.

Portman, a former U.S. trade representative, sent a letter last year urging the Commerce Department to move forward with this policy change that will strengthen the enforcement of U.S. trade laws with countries such as China and other nonmarket economies (NMEs).

“When countries such as China use unfair tax and trade laws to put U.S. companies at a disadvantage, our government must aggressively fight to change these policies,” said Portman, who initiated the first-ever legal case to be litigated and won against China before the World Trade Organization because of China's unfair treatment of U.S.-made auto parts.

“By adopting this policy, we will be able to better protect Ohio small businesses and farmers at-risk of unfair Chinese tax policies while being able to increase American exports.”

As Portman’s letter stated, the measure “adjust[s] the U.S. price used to calculate the margin of dumping in NME cases to account for export taxes, just as in cases involving market economy countries.”

Failure to make this adjustment in the past understated the margin of dumping calculated and hurt U.S. producers and workers.

In addition to the Steel Manufacturers Association, the Committee to Support U.S. Trade Laws and the United Steel Workers, these changes are supported by Globe Metallurgical, which employs 230 people in Beverly, Ohio. Globe is one of the world’s largest producers of silicon metal and silicon-based specialty alloys, which are used in producing solar panels and other products.

This proposed change to dumping calculations will help Globe avert a surge in Chinese imports, which would threaten the viability of their operations in Southeast Ohio.

Sen. Portman also submitted testimony in support of Ohio manufacturers at a hearing earlier this year on the growing problem of customs duty evasion from foreign exporters, especially Chinese exporters.

You can read the testimony here <http://portman.senate.gov/public/index.cfm/files/serve?File_id=ba8513ba…;.

The bipartisan letter can be found here <http://portman.senate.gov/public/index.cfm/press-releases?ID=7a83abb5-3…;.