Follow us on

Friday, May 24, 2013 | 1:29 a.m.

Web Search by YAHOO!

Updated: 5:37 p.m. Friday, June 15, 2012 | Posted: 5:36 p.m. Friday, June 15, 2012

WTO ruling should benefit AK Steel, exports

By Steve Bennish

Staff Writer

MIDDLETOWN — A ruling by the World Trade Organization announced Friday said China violates trade rules by duties placed on American high-tech steel since 2009, a decision that could benefit AK Steel here and steel industry exports overall.

United States Trade Representative Ron Kirk said the duties China imposed on flat-rolled electrical steel from the U.S. is inconsistent with international trade obligations. The steel is used in the generation and transmission of electricity.

“Today’s victory is important not only for steelworkers in Pennsylvania and Ohio, but also for American farmers and workers in other sectors that export to China,” Kirk said. “This decision sends another clear signal to China that it must do more to fulfill its WTO commitments, and that it will be held accountable to play by WTO rules.”

The ruling was applauded by AK Steel, which thanked Kirk.

“The WTO has correctly decided that China’s Ministry of Commerce had no justification to impose duties on AK Steel products,” said James L. Wainscott, Chairman, President, and CEO of AK Steel.  

AK Steel said that in December 2009, China’s Ministry of Commerce imposed duties of 19.5 percent, adding that the company is “one of the largest and most technologically-advanced global producers of grain-oriented electrical steels, which are helping to meet the world’s growing demand for efficient electricity generation, transmission and distribution.”

U.S. Sen. Sherrod Brown also applauded the ruling. China argued that U.S. “Buy America” provisions included in the Recovery Act acted as a subsidy that warranted duties, Brown said.

“The World Trade Organization took a stand for American manufacturers and stood up against illegal Chinese trade barriers,” Brown said. “Today’s ruling will remove barriers that prevent companies like AK Steel from selling their products in the global marketplace.”

AK Steel has been virtually shut out of the Chinese market because of the duties, said spokesman Barry Racey. He added that China may appeal the decision, and tariffs would remain in effect during an appeal.

AK Steel employs about 6,200 in Middletown, Mansfield, Coshocton and Zanesville; Butler, Pa.; Ashland, Ky.; Rockport, Ind. Its corporate headquarters are in West Chester.

More News

 

Hot topics

 

© 2013 Cox Media Group. By using this website, you accept the terms of our Visitor Agreement and Privacy Policy, and understand your options regarding Ad ChoicesAdChoices.