Global Geo-political Series: U.S. commerce department self-initiates AD & CVD investigation on imports of Common Alloy Aluminum sheet from China

Just weeks after U.S. President Trump concluded his trip to China, where he received a lavish welcome, the U.S. Commerce department self-initiated an AD (Anti-Dumping Duty)/CVD (Countervailing Duty) on imports of Common Alloy Aluminum sheet from China. Normally, AD and CVD investigations are initiated in response to petitions filed by a domestic industry alleging that dumped or unfairly subsidized goods are being exported into the U.S. market. By contrast, a self-initiation authority can be exercised whenever the Secretary determines, from information available, that a formal AD or CVD investigation is warranted. According to the Commerce Department, this investigation is the first of its kind in over a quarter century.

The U.S. Commerce Secretary Wilbur Ross was quoted saying, “President Trump made it clear from day one that unfair trade practices will not be tolerated under this administration, and today we take one more step in fulfilling that promise……We are self-initiating the first trade case in over a quarter century, showing once again that we stand in constant vigilance in support of free, fair, and reciprocal trade.”

In 2016, imports of hardwood plywood products from China were valued at an estimated $60.3.6 million.

Since becoming President, Trump has instructed his team to take up the issue of trade balance and dumping of foreign products seriously. From January 20, 2017, through November 29th, 2017, the Commerce has initiated 79 antidumping and countervailing duty investigations; a 65 percent increase over the previous year.