Pipe makers, officials meet over trade sanctions

Executives explained to a
federal official why China’s subsidies are unfair.

By DON SHILLING

VINDICATOR BUSINESS EDITOR

SHARON, Pa. — Local pipe makers who are seeking trade sanctions against China presented their case Wednesday to a federal official.

David Spooner, assistant secretary for import administration at the Department of Commerce, listened carefully to the information presented, said Tim Feeney, general manager of Sharon Tube.

Feeney said the main point he wanted to get across is that China’s subsidies of its companies are unfair.

“We want a level playing field,” he said.

He described Spooner’s reaction as positive.

Sharon Tube and Wheatland Tube, which are both owned by a Washington, D.C., investment firm, are among the six producers of standard pipe that have asked federal agencies to impose duties on imports from China. The pipe is used in nonresidential plumbing, sprinkler systems and fences.

Spooner will be involved in making a decision and came to Sharon as part of his fact-finding, Feeney said.

The meeting at the Shenango Valley Chamber of Commerce was organized by U.S. Rep. Phil English of Erie, R-3rd.

“In recent years, the domestic pipe and tube industry has been dealt a heavy blow, being forced to bear the brunt of China’s illegal trading practices,” English said.

Ruling to come

Last month, the U.S. International Trade Commission advanced the petition by the pipe producers to the Department of Commerce, which will make a ruling.

Chinese imports of standard pipe have increased from 10,000 tons in 2002 to 690,000 tons last year.

Officials representing the domestic producers have said they can’t compete because China’s subsidies allow its producers to sell product for less than raw material costs, even with ocean freight charges.

Also attending the meeting were officials from the chamber, Wheatland Tube, Duferco Steel and local union officials.

Feeney said union officials did a good job of describing how job losses have hurt local communities.

Wheatland Tube has closed a plant in Sharon and eliminated 400 jobs. Wheatland Tube and Sharon Tube employ about 1,200 workers at plants in Mercer County in Pennsylvania and Trumbull County in Ohio.

shilling@vindy.com