US bill would Add U.S. Interested Parties in Dumping Cases

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On February 16, 2007, House member Joe Knollenberg (R-MI) introduced the “American Manufacturing Competitiveness Act” (H.R. 1127) to amend the Tariff Act of 1930 to allow United States manufactures that use products subject to countervailing or antidumping duty proceedings or use domestic like products to participate in those proceedings as interested parties. More specifically:

Objective of the bill H.R.1127 as stated is “To amend the Tariff Act of 1930 to allow United States manufacturers that use products subject to countervailing or antidumping duty proceedings or use domestic like products to participate in those proceedings as interested parties, and for other purposes.”

The bill proposes 

§         A new condition for the imposition of countervailing/antidumping duties that the ITC determines that the imposition of a duty would result in greater benefits to that United States industry than harm to United States industry users.

§         To expand the definition of an interested party by adding a United States industrial user, or a trade or business association a majority of whose members are United States industrial users. The bill defines an “industrial user” as a manufacturer or producer that uses subject merchandise or a domestic like product in the manufacture or product of any product in the United States”

§         To instructs the ITC to consider net benefit to US industry against harm to US industry users when making both preliminary and final determinations. This net effect should also be considered in administrative reviews.

§         To changes the law with regards to the termination or suspension of investigations by including industrial users in the public interest factors

To explain how the relevant authorities should evaluate benefits to the US industry and harm to the US industrial users. Likely harm to the users comes from declines in output, sales, market share, profits, productivity, return on investments, and utilization of capacity in the production of downstream products. Evaluation will also include likely harm from negative impact on cash flow, inventories, employment, wages, growth, ability to raise capital, and investment, and the extend to which these users would be able to pass on additional costs resulting from duties and any other economic factors as the Commission determines are relevant. 

Lamy, to kick start Doha negotiations

Pascal Lamy, Director General WTO, urged the WTO members to kick-start the Doha negotiations.

A lot of effort has been made at various level to kick start the stalled Doha Negotiations. In the first week of March India, USA, Brazil and EU had unsuccessful disucssions to break the deadlock on Doha negotiations.

On the other hand, the USA, after failing in its previous attempts to lure developing countries to come back to the negotiation table, has now adopted a bottom-down approach. USA has now started bilateral talks with key negotiating countries to iron out conflicts. On 9th march, USTR Susan Schwad discussed agricultural trade issues with the Brazilian trade Minister, to bridge the differences. Both the countries reflected positive sentiments about the progress of talks and emphasised that such bilateral talks would finally intensify Doha Negotiations.

Indian trade minister Kamal Nath discented to USA’s proposal to finish the Doha round before 30th June 2007. Mr.Nath streseed that favorable proposal from EU and US only would end this deadlock. US tried to put pressure on the developing countries to finish the negotiations by 30th June 2007. Bush administration would loose its “fast track negotiations” power from 1st July 2007.