AMERICAN WIRE PRODUCERS ASSOCIATION May 6, 2009 The

801 North Fairfax Street
Suite 211
Alexandria, VA 22314-1757
AMERICAN
WIRE
PRODUCERS
ASSOCIATION
“Steel Wire and Wire Products
for North America and the World”
Phone: 703-299-4434
Fax: 703-299-9233
Email: [email protected]
Kimberly A. Korbel
Executive Director
May 6, 2009
The Honorable Ronald Kirk
United States Trade Representative
600 17th Street NW
Washington, DC 20508
Re: Chinese Government’s Trade Distorting Border Tax Scheme
Dear Mr. Ambassador:
We are writing on behalf of the following American trade associations whose member
companies manufacture fabricated steel wire products:
American Wire Producers Association (AWPA)
Cold Finished Steel Bar Institute (CFSBI)
Committee of Domestic Steel Wire Rope and Specialty Cable Manufacturers
Concrete Reinforcing Steel Institute (CRSI)
Industrial Fasteners Institute (IFI)
PC Strand Coalition
Spring Manufacturers Institute (SMI)
Wire Fabricators Association (WFA)
Wire Reinforcement Institute (WRI)
Together these trade associations represent more than 750 companies which produce a
wide range of steel products for which the primary raw material is carbon, alloy or
stainless steel wire rod.
The People’s Republic of China has adopted differential border tax policies which
severely harm the economic well-being of our member companies as well as their
suppliers and customers and which threaten the American jobs represented by all of the
companies in our supply chain. These tax policies are in violation of China’s
international trade obligations under the rules of the World Trade Organization (WTO).
China has imposed export taxes on steel wire rod while granting value added tax (VAT)
rebates on finished downstream steel products, creating distortions which directly and
adversely impact US manufacturers. The Chinese export tax on wire rod discourages
the exportation of wire rod, resulting in artificially low prices in the Chinese home market
and benefiting Chinese producers of higher value-added downstream products. When
the effects of this distortive tax are combined with China’s VAT rebates which
AWPA Letter to The Honorable Ronald Kirk
May 6, 2009
Page 2
encourage the exportation of downstream fabricated steel products, Chinese
manufacturers have a significant unfair advantage over producers in the US and
elsewhere.
Since the onset of the recession last fall, our member companies have suffered
unprecedented job losses with some workforce cutbacks as high as 25%. As the US
and world economies begin to recover, imports of unfairly traded Chinese steel products
are likely to expand rapidly with a devastating impact on the industries represented by
our trade associations, their workers and communities. In addition, if our member
companies are forced to reduce their operations further or if they go out of business
altogether, our suppliers – North American producers of steel wire rod – will see their
customer base erode, causing even more production cutbacks and job losses.
We urge you to continue to insist that the Chinese government promptly eliminate these
trade distorting differential tax policies. China's continuing manipulation of its export tax
and VAT systems to promote the production and exportation of value-added products is
unfair, injurious to American industries, and inconsistent with China’s international trade
obligations. If China refuses, we ask your office to act on President Obama’s
commitment to rules-based trade by preparing and, if necessary, pursuing a WTO
challenge of these illegal Chinese trade policies.
Walter Robertson, III
President, American Wire Producers Association
President, Johnstown Wire Technologies, Inc.
Mark Redding
Chairman, Government Relations Committee, Cold Finished Steel Bar Institute
President and Chief Executive Officer, Banner Service Corporation
20GRGT010
AWPA Letter to The Honorable Ronald Kirk
May 6, 2009
Page 3
Jeffrey Levin
General Counsel, Committee of Domestic Steel Wire Rope and Specialty Cable
Manufacturers
Robert J Risser, Jr.
President and CEO, Concrete Reinforcing Steel Institute
Robert J. Harris
Managing Director, International Fasteners Institute
20GRGT010
AWPA Letter to The Honorable Ronald Kirk
May 6, 2009
Page 4
Tim Selhorst
On behalf of the PC Strand Producers Coalition
President & CEO, American Spring Wire Corporation
Ronald E. Banas
President, Spring Manufacturers Institute
President, Stanley Spring and Stamping
Rich Carrigan
President, Wire Fabricators Association
President, United Displaycraft
James M. McCall
Chairman of the Board, Wire Reinforcement Institute
Vice President, MMI, Inc.
20GRGT010
Coalition of Rod Consumer Associations
Company Name
20th Century Spring Manufacturing
3M Corrosion Protection Products
A & H Steel Ltd.
A. H. Harris & Sons, Inc.
A.I. Technology Inc.
A.V. Weber Co., Inc.
A1 Spring & Stamping, LLC
A-1 Wire
AAAA Specialties, Inc.
ABC Coating Company of Illinois Inc.
ABC Coating Company of Michigan, Inc.
ABC Coating Company of Minnesota
ABC Coating Company, Inc.
Accra-Wire Controls, Inc.
Ace Steel Erection, Inc.
Ace Wire Spring & Form Co., Inc.
Acme Screw Company, Inc.
Acme Wire Products Co., Inc.
Acme-Monaco
ACS Industries Inc.
Action Spring
Acument Global Technologies
Addison Construction Supply, Inc.
Advance Wire Products Ltd.
Advanced Rebar Applications
Aero Spring and Manufacturing
AFI Industries Inc.
AIM, Inc.
Akko Fastener, Inc.
Akron Rebar Company
Akzo Nobel China Representative Office
Akzo Nobel Powder Coatings
Alabama Wire, Inc.
Alamillo Rebar Inc.
Alcoa Fastening Systems
Alliance Steel
Alloy Wire International
All-Rite Spring Company
Alton Steel, Inc.
Ambassador Steel Corporation
Ambassador Steel Corporation/Nufab Rebar
Amber Steel Company
American Bar Products
American MSC
American Precision Spring
American Specialty Company
American Spring Wire Corp.
American Steel Fab Inc.
American Wire Tie, Inc.
AMS Specialty Steel
Amstek Metal
Anchor Abrasives Inc.
Anchor Bolt & Screw Company
Anco Steel Company, Inc.
Anderson Quality Spring
Angola Wire Products, Inc.
APCO Products
Rod Coalition Company List merge.xlsx
Association
SMI
CRSI, WRI
CRSI
CRSI
SMI
SMI
SMI
SMI
SMI
CRSI
CRSI
CRSI
CRSI
SMI
CRSI
SMI
IFI
WFA
SMI
AWPA
SMI
IFI
CRSI
WFA
CRSI
SMI
IFI
WFA
IFI
CRSI
CRSI
CRSI
WFA
CRSI
IFI
AWPA
SMI
SMI
CFSBI, CRSI
CRSI
CRSI
CRSI
CFSBI
SMI
SMI
SMI
SMI, AWPA, PCSC
CRSI
CRSI
AWPA
SMI
SMI
IFI
CRSI
SMI
WFA
WFA
Page 1
Coalition of Rod Consumer Associations
Company Name
Apex Spring & Stamping Corp.
Arcelor Mittal Long Carbon North America
ArcelorMittal Vinton, Inc.
ArcelorMittal Wire Group
Argo Products Company
Argo Spring Manufacturing
Ark Technologies Inc.
Arrow Manufacturing
Arrowhead Rebar, L.P.
aSa-Applied Systems Associates, Inc.
Asahi-Seiki Manufacturing Co. Ltd
Astoria Wire Products
ATF, Inc.
Atlantic Spring
Atlantic Wire Company, LLC
Automated Industrial Motion
Automated Wire Products Inc.
Automatic Spring Products
AVK Industrial Products
Aztech Lubricants
B & B/Hemphill Spring, Clio, Inc. Companies
B. L. Downey Company LLC
Badger Precision Spring, Inc.
Baker Concrete Construction, Inc.
Banner Service Corporation
Barker Steel LLC
Barlines Rebar Estg. & Dtlg., Inc.
Barnes Industrial
Barsplice Products, Inc.
Barton Malow Company
Baumann Springs Leon S De RL de CV
Baumann Springs Texas, Ltd.
BDS Vircon
Beaumont Wire
Bec-Don, Inc.
Bekaert Corporation
Bellis Steel Company, Inc.
Beta Steel
Betts Spring Company
Big G Express
Birmingham Fastener, Inc.
Blachford Corporation
Block Heavy & Highway Products Co.
Bloomingburg Spring and Wire Form Co., Inc.
Bohne Spring Industries Limited
Bollhoff Rivnut Inc.
Brico Industries, Inc.
Bridon American Corporation
Burns Palmer Professional Services LLC
C & T Reinforcing Steel Co.
C T Sales, Inc.
C&F Wire Products
C. G. Schmidt, Inc.
CADS-USA, Inc.
California Screw Products Corporation
Campbell Operations/Cooper Tools
Cannon Spring Company
Rod Coalition Company List merge.xlsx
Association
SMI
CFSBI, AWPA
CRSI
AWPA
WFA
SMI
SMI
SMI
CRSI
CRSI
SMI
WFA
IFI
SMI
AWPA
SMI
SMI
SMI
IFI
AWPA
SMI
CRSI, WRI
SMI
CRSI
CFSBI
CRSI
CRSI
SMI
CRSI
CRSI
SMI
SMI
CRSI
WRI
CRSI
AWPA, SMI
CRSI
AWPA
SMI
CRSI
IFI
AWPA
CRSI
SMI
SMI
IFI
IFI
CDWRC
CRSI
CRSI
CRSI
SMI
CRSI
CRSI
IFI
AWPA
SMI
Page 2
Coalition of Rod Consumer Associations
Company Name
Capital Spring
Capitol Coil Inc.
Cardinal Fastener & Specialty Co., Inc.
Cargill Ferrous International
Carpenter Technology Corporation
Carter Concrete Structures
Cascade Steel Rolling Mills, Inc.
Cavert Wire Company, Inc.
CDW Service Center
Ceco Concrete Construction
Central Steel, Inc.
Central Wire Group
Centric Alloys Corp.
Century Spring
CFS Steel Company
Chamberlain Spring Ltd.
Chandler Products
Charter Steel
Charter Wire
CHS & Associates LLC
Cleveland Cement Contractors, Inc.
Cleveland Rebar Company
CMA Steel & Fabrication
CMC Alamo Steel
CMC Americas
CMC Banner Rebar
CMC Capitol City Steel
CMC Capitol Steel
CMC Capitol Steel Slidell
CMC Coating of Colorado
CMC Coating of North Carolina
CMC Coating of Texas
CMC Construction Services
CMC Construction Services (Rebar)
CMC Economy Steel
CMC Fontana Steel
CMC Houston Steel
CMC Rebar Albuquerque
CMC Rebar Arizona
CMC Rebar Carolinas
CMC Rebar Corpus Christi
CMC Rebar Fabricators
CMC Rebar Fresno
CMC Rebar Georgia
CMC Rebar Golden Gate
CMC Rebar San Antonio
CMC Rebar Virginia
CMC South Carolina Steel
CMC Southern States Steel
CMC Steel Arizona
CMC Steel Group
CMC Steel South Carolina
CMC Steel Texas
CMC Sterling Steel
CMC Texas Cold Finished Steel
CMC Toltec Steel
CMC Valley Steel
Rod Coalition Company List merge.xlsx
Association
SMI
SMI
IFI
AWPA
AWPA
CRSI
AWPA, CRSI
AWPA
SMI
CRSI
CRSI
AWPA
AWPA
SMI
CRSI
SMI
IFI
AWPA, CFSBI
CFSBI
CRSI
CRSI
CRSI
CRSI
CRSI
CRSI
CRSI
CRSI
CRSI
CRSI
CRSI
CRSI
CRSI
CRSI
CRSI
CRSI
CRSI
CRSI
CRSI
CRSI
CRSI
CRSI
CRSI
CRSI
CRSI
CRSI
CRSI
CRSI
CRSI
CRSI
CRSI
CRSI
CRSI
CRSI
CRSI
CRSI
CRSI
CRSI
Page 3
Coalition of Rod Consumer Associations
Company Name
Cochrane Steel, Inc.
Coiling Technologies
Colonial/Han-Dee Spring, LLC
Colorado Coiling
Commercial Metals Company
Commercial Resins Company
Commercial Spring & Tool Co., Ltd.
Conco Reinforcing Steel
Condat Corporation
Condor Rebar Consultants, Inc.
Continental Cable LLC/GBG Industries
Contractors Materials Company
Coral Steel Company
Corey Steel Company
Corus International
Coutinho and Ferrostaal Inc.
Crawford Manufacturing Company
Curran Coil Spring, Inc
Custom Spring Corporation
D.R. Templeman Co.
Dalco Industries, Inc.
Davis Rebar
Davis Wire Corporation
Davis Wire Pueblo Corporation
Dayton Superior Canada Ltd.
Dayton Superior Corporation
Deacero SA de CV
Dell Marking Systems, Inc.
Delta Spring Ltd.
Dendoff Springs Ltd.
DeSantis Industrial Spring Stampings
Dextra America
Diamond Wire Spring
Dimension Fabricators, Inc.
Dimond Fabricators
Diversified Spring Tech. Inc.
Doncasters Fastener Systems Group
Draco Spring Manufacturing
Drake-Williams Steel, Inc.
Dudek & Bock Spring Manufacturing
Duer/Carolina Coil, Inc.
Duferco Steel Inc.
Dunkirk Specialty Steel, LLC
DuPont Coating Solutions
DuPont Powder Coatings U.S.A., Inc.
Eagle Estimating
East Coast Rebar, Inc.
Eastern Display Group
Eastern Steel Constructors, Inc.
E-B Wire Works
EBC Industries Erie Bolt Division
Economy Spring & Stamping
Ege Celik Endustrisi Sanayi ve Ticaret AS
Electric Eel Manufacturing Company
Elgiloy Specialty Metals
Elgin Fastener Group
Elyria Spring & Specialty Inc.
Rod Coalition Company List merge.xlsx
Association
CRSI
SMI
SMI
SMI
AWPA
CRSI
SMI
CRSI
AWPA
CRSI
CDWRC
CRSI
CRSI
CFSBI
AWPA
AWPA, WRI
SMI
SMI
SMI
SMI
CRSI
CRSI
CRSI, WRI
CRSI
CRSI
CRSI
AWPA
SMI
SMI
SMI
SMI
CRSI
SMI
CRSI
CRSI
SMI
IFI
SMI
CRSI
SMI
SMI
AWPA
AWPA
WFA
CRSI
CRSI
CRSI
WFA
CRSI
WFA
IFI
SMI
AWPA
SMI
SMI
IFI
SMI
Page 4
Coalition of Rod Consumer Associations
Company Name
Emhart Teknologies
Engineered Devices Corporation
Engineered Spring Products
Engineered Wire Products
Enkotec Company Inc.
Epoxicote Rebar, Inc.
EPS, Inc.
ERICO Europe B. V.
ERICO International Corporation
Erisco Industries
ESAB Welding & Cutting NA
Euclid Spring
EVG, Inc.
Evraz Rocky Mountain Steel
Exacto Spring
Eyster's Machine & Wire Products
F. J. Folz Co., Inc.
Fall River Manufacturing Co., Inc.
Farwest Steel Corporation
FCS Construction Systems, Inc.
Federal Screw Works
Fenn Technologies
Fennell Spring Company
Fischer Special Manufacturing Co.
Flat Cat Concrete, Inc.
Folding Guard Corp.
Foremost Spring Co., Inc.
Forming Systems Inc
Foundation Steel & Wire Mfg. Ltd.
Foundation Technologies, Inc.
Fourslide Spring and Stamping, Inc.
Fox Valley Spring
Franklin Display Group
Free State Steel, Inc.
Furnace Fixers, Inc.
G3 Steel Group
Gardner Spring, Inc
Gate City Steel, Inc.
Gateway Building Products of Missouri
GCR Eurodraw SPA
Gemco Manufacturing
General Steel Co., Inc.
General Technologies, Inc.
General Wire Spring
Gerdau Ameristeel
Gerdau Ameristeel Appleton Reinforcing
Gerdau Ameristeel Belvidere Reinforcing
Gerdau Ameristeel Decatur Reinforcing
Gerdau Ameristeel Eldridge Reinforcing
Gerdau Ameristeel Madison Reinforcing
Gibbs Wire & Steel Co. of Canada Ltd.
Gibbs Wire & Steel Co., Inc.
Gifford Spring Company
Gilbert Spring Corp.
Gilco Spring of Florida, Inc.
Global Detailing Service, LLC
Goedecke Company
Rod Coalition Company List merge.xlsx
Association
IFI
CRSI
SMI
CRSI
AWPA
CRSI
IFI
CRSI
CRSI
WFA
AWPA
SMI
CRSI, WRI
AWPA, CRSI
SMI
WFA
CRSI
IFI
CRSI
CRSI
IFI
SMI
SMI
IFI
CRSI
WFA
SMI
SMI
WRI, CRSI
CRSI
SMI
SMI
WFA
CRSI
SMI
AWPA
SMI
CRSI
CRSI
AWPA
SMI
CRSI
CRSI
SMI
AWPA, CRSI, WRI
CRSI
CRSI
CRSI
CRSI
CRSI
SMI
SMI
SMI
SMI
SMI
CRSI
CRSI
Page 5
Coalition of Rod Consumer Associations
Company Name
Gotham Staple Co., Inc.
Grayline Housewares
Gulf Coast Spring
H. Paulin & Company Limited
Haldex Garphyttan Corp.
Hardware Products
HarMac Rebar & Steel Corporation
Harris Rebar
Harris Rebar ABCO Inc.
Harris Rebar Fresno Inc.
Harris Rebar New Mexico
Harris Rebar Salt Lake, Inc.
Harris Rebar Seattle, Inc.
Harris Salinas Rebar
Harris Supply Solutions, Inc.
Hawthorne Wire, Ltd.
Haydon Bolts, Inc.
Hayes Industries, Ltd.
Headed Reinforcement Corp.
Heico Wire Group
Heiplex Inc
Heritage Steel Sales Ltd.
Hill Fastener Corporation
Hill Rebar, Inc.
HN Tool & Die
Hoosier Spring
HS Wire Technology
HyTech Spring and Machine
I.M.P.A.C.T.
Ideal Welding Systems
Ideal-Werk
Ifastgroupe
Industrial Nut Corporation
Industrial Spring of St. Louis, Inc.
Industrial Spring Steel, Inc.
Industrial Steel & Wire Co.
Industrial Steel & Wire Co.
Infinity Spring, Inc.
Insteel Industries Inc.
Insteel Wire Products, Inc.
International Spring Co
International Zinc Association
Intertek Testing Services NA, Inc.
InterWire Midwest, Inc.
InterWire Products - California, Inc.
InterWire Products, Inc.
Iowa Spring Manufacturing
Iowa Steel & Wire Co., Inc.
iQ - International Quantum
ITC, Inc.
ITW CIP
ITW Red Head
ITW Shakeproof Industrial Products
Ivaco Rolling Mills Ltd.
Ivy Steel & Wire
J & B Steel Erectors, Inc.
J & E Industries, LLC
Rod Coalition Company List merge.xlsx
Association
CRSI
WFA
SMI
IFI
SMI
SMI
CRSI
CRSI
CRSI
CRSI
CRSI
CRSI
CRSI
CRSI
CRSI
AWPA
IFI
CRSI
CRSI
AWPA
SMI
CRSI
IFI
CRSI
SMI
SMI
SMI, AWPA
SMI
CRSI
WFA, WRI
WRI
IFI
IFI
SMI
SMI
SMI
WFA
SMI
AWPA, PCSC
CRSI, WRI
SMI
CRSI
CRSI
SMI
SMI
SMI
SMI
CRSI, WRI
IFI
AWPA
IFI
IFI
IFI, SMI
AWPA
CRSI, WRI
CRSI
CRSI
Page 6
Coalition of Rod Consumer Associations
Company Name
J. D. Steel Co., Inc.
J. M. Ahle Co., Inc.
Jackson Spring & Manufacturing
JADE Mfg., Inc
James Spring & Wire Co.
Jiffy Clip, Inc.
JMF Rebar Services
JN Machinery Corp.
Johasee Rebar, Inc.
John Evans' Sons Inc.
John Hassall, Inc.
Johnstown Wire Technologies Inc.
Jowitt & Rodgers Company
K&S Wire Products
Kamax L.P.
Kato Spring of California
Katy Steel Co.
Kaylake Industries Inc.
Keats Manufacturing
Keats Southwest
Kern-Liebers USA
Kerr Lakeside Inc.
Keystone Consolidated Industries, Inc.
Keystone Profiles
Keystone Steel & Wire Company
KHC Corporation
King Steel Corporation
Kirk-Habicht
Kiswire Trading Inc
Klein Reinforcing Services
Kokomo Spring Company, Inc.
KRB Machinery Co.
Krueger and Company, Inc.
Krueger Steel & Wire
Kuhar Metallizing Company, Inc.
Kurt Orban Partners LLC
L & M Steel Co., Inc.
Lafayette Wire Products, Inc.
Lane Enterprises, Inc.
Lang Fastener
Lapham-Hickey Steel Corporation
Laurel - LEC Steel Inc.
Lee Spring Company
Leeco Spring International
Leggett & Platt Wire Group
Leggett & Platt, Inc.
Leland Industries Inc.
Leland-Powell Fasteners, Inc.
LEP Special Fasteners Inc.
Liberty Spring
Linbeck
Link Engineering Company
Little Falls Alloys, Inc.
Loos & Co., Inc.
Lozier Corp.
LTS Associates, Inc.
Lucchini USA Inc.
Rod Coalition Company List merge.xlsx
Association
CRSI
CRSI
SMI
SMI
SMI
CRSI
CRSI
SMI
CRSI
SMI
IFI
AWPA
SMI
WFA
IFI
SMI
CRSI
CRSI
SMI
SMI
SMI
IFI
CRSI
CFSBI
AWPA
SMI
AWPA
SMI
SMI
CRSI
SMI
CRSI
CFSBI
AWPA
AWPA
AWPA
CRSI
WFA
CRSI, WRI
IFI
SMI
WRI
SMI
SMI
SMI
AWPA
IFI
IFI
IFI
SMI
CRSI
SMI
SMI
CDWRC
WFA
CRSI
AWPA
Page 7
Coalition of Rod Consumer Associations
Company Name
M & S Spring
M&B Metal Products Company
MacLean Fastening Services
MacLean Maynard LLC
MacLean Vehicle Systems
MacLean-ESNA
MacLean-Fogg Company
Macsteel International USA Corporation
Magnolia Steel Co., Inc.
Magnum Construction
Man of Steel Drafting, Inc.
Mapes Piano String Company
Marik Spring
Mario Frigerio Spa
Marlin Steel Wire Products LLC
Mar-Mac Wire, Inc.
Marni Spring Corporation
Maryland Precision Spring
Masonry Institute of America
Master Halco, Inc.
Master Spring & Wire Form Co.
Mastercoil Spring
Matthew Warren
McNish Steel Ltd.
Meadow Burke Products
Medicoil Inc
Men of Steel Enterprises, LLC
MEP SpA
Mercer Spring & Wire
MET Rebar Detailing
Michigan Spring & Stamping
Michigan Steel Spring Co.
Micro Wire Products
Mid Continent Nail Corporation
Mid West Fabricating Co.
Mid-Continent Spring
MID-SHIP Logistics
Mid-South Wire Co.
Mid-South Wire Company
Midstate Spring, Inc.
Midvalley Rebar Ltd
Mid-West Metal Products Co.
Mid-West Spring & Stamping
Mid-West Spring Manufacturing
Mid-West Wire Specialties, Inc.
Miller & Long Co., Inc.
MLP Steel
MMFX Steel Corporation
MMFX Technologies Corporation
MMI Products of Kentucky
MMI Products, Inc.
MNP Corporation
Mohawk Spring
Molded Fiber Glass Construction Products
Monticello Spring
Morgan-Koch Corp.
Morgan-Koch Corporation
Rod Coalition Company List merge.xlsx
Association
SMI
AWPA
IFI
IFI
IFI
IFI
IFI
AWPA
CRSI
CRSI
CRSI
AWPA, SMI
SMI
AWPA
WFA
AWPA, CRSI
SMI
SMI
CRSI
AWPA
SMI
SMI
SMI
CRSI
CRSI
SMI
CRSI
CRSI
SMI
CRSI
SMI
SMI
WFA
AWPA
IFI
SMI
AWPA
WFA
AWPA
SMI
CRSI
WFA
SMI
SMI
WFA
CRSI
AWPA
CRSI
CRSI
CRSI
AWPA, CRSI
IFI
SMI
CRSI
SMI
WRI
AWPA
Page 8
Coalition of Rod Consumer Associations
Company Name
Morse Steel Service
Motion Dynamics
Mount Joy Wire Corporation
Mubea Inc.
Murphy & Read Spring Manufacturing
MW Industries, Inc
Myers Spring Co., Inc.
N. J. Galvanizing, Inc.
Nashville Wire Products
Navarro Spring Co., Inc.
Nelsen Steel & Wire
Nestaway
New York Rebar, Inc.
Newcomb Spring Corp.
Newcomb Spring of Atlanta
Newcomb Spring of California
Newcomb Spring of Canada
Newcomb Spring of Carolina
Newcomb Spring of Colorado
Newcomb Spring of Connecticut
Newcomb Spring of Tennessee
Newcomb Spring of Texas
NHK International Corporation
Niagara LaSalle Company
Nichols International Machinery Systems Co.
Nor-Cal Steel, Inc.
North American Spring Tool Co.
Northeast Spring, Inc.
Northeast Steel Corporation
Northern Wire Products, Inc.
Northwest Fourslide, Inc.
Nova Machine Products, Inc.
Novi Spring Inc.
Nucor Steel - Texas
Nucor Steel - Utah
Nucor Steel Auburn, Inc.
Nucor Steel Birmingham, Inc.
Nucor Steel Connecticut
Nucor Steel Corporation
Nucor Steel Jackson, Inc.
Nucor Steel Kankakee, Inc.
Nucor Steel Marion, Inc.
Nucor Steel Seattle, Inc.
Nucor Steel Services of Florida, Inc.
Nucor Steel South Carolina
NUMAMERICA
Nylok Corporation
O & G Spring & Wire Forms Co.
Ocean Steel Rebar Services Ltd.
O'Hare Spring Co., Inc.
Ohio Rod Products
Oklahoma Steel & Wire Co., Inc.
Oregon Wire Products, LLC
Oriimec Corporation of America
Oshkosh Coil Spring, Inc
Outokumpu Stainless, Inc.
P.J. Wallbank Manufacturing Co., Ltd.
Rod Coalition Company List merge.xlsx
Association
CRSI
SMI
AWPA
SMI
SMI
SMI
SMI
CRSI
WFA
SMI
CFSBI
WFA
CRSI
SMI
SMI
SMI
SMI
SMI
SMI
SMI
SMI
SMI
SMI
CFSBI
SMI
CRSI
SMI
SMI
SMI
WFA
SMI
IFI
SMI
CRSI
CRSI
CRSI
CRSI
CRSI, WRI
AWPA, CRSI, CFSBI
CRSI
CRSI
CRSI
CRSI
CRSI
CRSI
WFA
IFI
SMI
CRSI
SMI
IFI
AWPA, CRSI, WFA, WRI
WFA
SMI
SMI
AWPA
SMI
Page 9
Coalition of Rod Consumer Associations
Company Name
P.J. Wallbank Springs, Inc.
Pacific Coast Spring Co
Pacific Coast Steel
Palmetto State Steel Company
Panacea Products Corp.
Paradise Rebar, Inc.
Paragon Products
Paragon Spring Company
Paramount Die Company Inc.
Paramount Spring Eng. Co. Inc.
Paris Spring
Parkway-Kew Corporation
Patrick Manufacturing, Inc.
Peck Spring Corp.
Penn-Elkco Spring Co.
PennEngineering
Perfection Spring & Stamping Corp.
Performance Springs
Peridot Corporation
Peterson Spring
Phoenix Spring Company
Plymouth Spring Co., Inc.
Pohl Spring Works, Inc
Pontotoc Spring
Precision Coil Spring Co.
Precision Metal Services, Inc.
Precision Rebar & Accessories, Inc.
Precision Screw Company
Precision Steel Warehouse
Prefabricados, CIFA
Premier Manufacturing Corporation
Premier Spring & Manufacturing Ltd.
Productos Hitech de Monterrey, SA de CV
Prothious, Inc.
Puget Sound Steel
Pyramid Steel, Inc.
Pyromaitre Inc.
Qatar Metals Coating Company
QED Wire Lines Inc.
QSN Industries
Quality Bolt & Screw Co.
Quality Reinforcing Inc.
Quality Spring/Togo, Inc.
R & D Steel, Inc.
R & L Spring Co.
R & R Rebar Fabricators, Inc.
R2M2 Rebar and Stressing
Racine Iron & Wire Works, Inc.
Radcliff Wire, Inc.
Rebar Corp of Indiana
Rebar Detailers & Estimators
Rebar Engineering, Inc.
Rebar Machine Sales and Service
Rebar Services & Supply Co.
Rebarfab, Inc.
rebars & mesh, inc.
Reell Precision Manufacturing
Rod Coalition Company List merge.xlsx
Association
SMI
SMI
CRSI
CRSI
WFA
CRSI
CRSI
SMI
AWPA
SMI
SMI
AWPA
SMI
SMI
SMI
IFI
SMI
SMI
SMI
SMI
SMI
SMI
SMI
SMI
SMI
AWPA
CRSI
IFI
SMI
WRI
WFA
SMI
SMI
CRSI
CRSI
CRSI
SMI
CRSI
AWPA
IFI
IFI
CRSI
SMI
CRSI
SMI
CRSI
CRSI
WFA
SMI
CRSI
CRSI
CRSI
CRSI
CRSI
CRSI
CRSI
SMI
Page 10
Coalition of Rod Consumer Associations
Company Name
Refabco, Inc.
Reinforced Concrete Services
Reinforcing Services Company
Reinforcing Steel Institute of Canada
Rem Manufacturing Ltd
Renton Coil Spring Co.
Resortes Monticello de Mexico, S.A. de C.V.
Resortes Newcomb
Re-Steel Supply Co., Inc.
Rev-Co Spring Manufacturing
Rezayat Protective Coating Co. Ltd.
Ric Burns Rebar Service
RK Trading Company
Rockford Fabricators, Inc.
Rockford Fastener Inc.
Rockford Spring Co.
Rogers Industrial Springs Inc.
Rowley Spring & Stamping Corp.
RPM Steel, Inc.
R-R Spring Corp.
Rusco Steel Company
Safety Socket LLC
Salit Specialty Rebar
Salit Steel - Grimsby
Salit Steel Rebar Division
Sandvik Materials Technology
Sawyer Steel Group
Scandic Springs, Inc.
Scherdel Sales & Technology, Inc.
Schlatter
Schlatter, Inc.
Schnell
Seaway Bolt & Specials Corp.
SEI Metalforms
SEI MetalTek
Semblex Corporation
Sems & Specials, Inc.
Senco Products, Inc.
SFS intec, Inc.
Sherwood Steel LTD
Shinko Machinery Co., Ltd
Shuster-Mettler Corp.
Simcote, Inc.
Simpson Reinforcing, Inc.
Sioux City Foundry
Sivaco Wire Group
Slidematic Precision Components Inc.
Sommer Metalcraft Corporation
Soule Software
South Atlantic, LLC
South Coast Steel Service, Inc.
South Pacific Steel Corp.
Southern Imperial, Inc.
Southern Precision Spring Co.
Southern Spring & Stamping
Southern Spring Manufacturing, Inc.
Southwestern Suppliers, Inc.
Rod Coalition Company List merge.xlsx
Association
CRSI
CRSI
CRSI
CRSI
SMI
SMI
SMI
SMI
CRSI
SMI
CRSI
CRSI
SMI
CRSI
IFI
SMI
SMI
SMI
CRSI
SMI
CRSI
IFI
CRSI
CRSI
CRSI
AWPA, SMI
CRSI
SMI
SMI
WFA
CRSI, WFA, WRI
CRSI
IFI
SMI
SMI
IFI
IFI
AWPA
IFI
CRSI
SMI
WFA
CRSI
CRSI
CRSI
SMI
IFI
WFA
CRSI
CRSI
CRSI
CRSI
WFA
SMI
SMI
SMI
CRSI
Page 11
Coalition of Rod Consumer Associations
Company Name
Spillman Company
Spiral-Fab, Inc.
Spiros Industries Inc.
Spring Dynamics, Inc.
Spring Engineers of Houston
Spring Manufacturers Institute
Spring Manufacturers Supply
Spring Manufacturing Corp.
Spring Team, Inc.
Spring Works, Inc.
Springfield Spring Corp.
Springmasters
Springs & Things Inc.
Springs, Inc.
SPS Technologies
SSW Holding Company, Inc.
St Louis Screw & Bolt Co.
Stalder Spring Works, Inc.
Standard Nut & Bolt
Stanley Spring & Stamping Corp.
State Highway Supply, Inc.
Status One Designs, Inc.
Steel Specialties of Mississippi, Inc.
Steel Works Rebar Fabricator
Steelco, Inc.
Steelcorp Incorporated
Steeledale Reinforcing
Stemcor USA Inc.
Stevens Wire Products, Inc.
Strand Metals Service, Inc.
Strand-Tech Martin, Inc
Stumpp, Schuele, & Somappa Spring & Wire LLC
Suhm Spring Works, Inc.
Sumiden Wire Products Corporation
Tadd Spring Co.
TAK Enterprises Incorporated
TAMCO
TATA, Inc.
Taubensee Steel & Wire Company
TDC Partners, LTD
Teme, Inc.
Teton Steel
The American Group of Constructors
The City Rebar Detailing, Inc.
The Marvin Group Reinforcement System
The Spring Works, Inc.
The Valspar Corporation
The Yost Superior Co.
Thompson Materials Corp.
Thorco Industries, Inc.
Three M Tool
Titan Spring Inc.
Titusville Fabricators, Inc.
Tollman Spring, Inc.
Tool King, Inc.
Traxit North America, LLC
Tree Island Industries Ltd.
Rod Coalition Company List merge.xlsx
Association
CRSI
CRSI
SMI
SMI
SMI
SMI
SMI
SMI
SMI
SMI
SMI
SMI
SMI
SMI
IFI
AWPA, WFA
IFI
SMI
IFI
SMI
CRSI
CRSI
CRSI
CRSI
CRSI
CRSI
CRSI
AWPA
WFA
CRSI
AWPA
SMI
SMI
AWPA, PCSC, SMI
SMI
SMI
CRSI
AWPA
AWPA, CFSBI, WFA
CRSI
CRSI
CRSI
CRSI
CRSI
WRI
WFA
CRSI
SMI
CRSI
WFA
WFA
SMI
CRSI
SMI
SMI
AWPA
CRSI, WRI
Page 12
Coalition of Rod Consumer Associations
Company Name
Tree Island Wire USA
Trefilados Inoxidables de Mexico
Tremac Corp.
Tri-Matic Spring, Inc.
Trion Industries, Inc.
Tri-Steel Corporation
Trowbridge Steel Co., Inc.
Tudor Sales Ltd
TurnaSure LLC
Twist, Inc.
U. S. Drafting & Detailing, Inc.
U.S. Spring Specialties, Inc.
Ulbrich of California, Inc.
Ulbrich of Georgia, Inc.
Ulbrich of Illinois, Inc.
Ulbrich of New England, Inc.
Ulbrich Shaped Wire
Ulbrich Stainless Steels & Special Metals, Inc.
Ultimation Machines Ltd
Ultimation Machines Ltd/Penn Machinery Co.
UNARCO Industries, Inc.
United Construction Products, Inc.
United Displaycraft
United Spring Technology Inc.
United Wire Co., Inc
Universal Building Products, Inc.
Uniwire International Ltd.
Unytite, Inc.
Upland Contracting, Inc./Jamac Steel, Inc
Valley Forge & Bolt Mfg. Co.
Vamp Company
Vico Company
Victory Machinery Exchange, Inc.
Victory Rebuilding & Parts Technology, Inc.
Victory Steel Co., Inc.
Viking Wire LLC
Vimco, Inc.
Vulcan Spring & Manufacturing Co.
Vulcan Threaded Products
W.B. Jones Spring Co., Inc.
Wady Industries, Inc.
Wafios Machinery Corp.
Washington Wire Rope
Wesco Spring Company
Western Coating, Inc.
Western Spring & Wire Ltd.
Western Spring Manufacturing
Western Steel Council
Western Wire Products Co.
Whaley Steel Corporation
Whaling City Iron Co.
Wheelabrator Group
Whitacre Engineering Company
Wilcox Steel
Wilton Precision Steel
Winamac Coil Spring, Inc.
Wire Products Corporation
Rod Coalition Company List merge.xlsx
Association
AWPA
AWPA
SMI
SMI
WFA
CRSI
CRSI
CRSI
IFI
SMI
CRSI
SMI
SMI
SMI
SMI
SMI
AWPA
SMI
WFA
WFA
WFA
CRSI
WFA
SMI
SMI
CRSI
AWPA
IFI
CRSI
IFI
IFI
IFI
SMI
SMI
CRSI
CRSI
CRSI
SMI
AWPA, CFSBI
SMI
CRSI
SMI
CDWRC
SMI
CRSI
SMI
SMI
CRSI
IFI
CRSI
CRSI
SMI
CRSI
CFSBI
CFSBI
SMI
WFA
Page 13
Coalition of Rod Consumer Associations
Company Name
WireCo WorldGroup
WireCrafters, LLC
Wiremasters, Inc.
WireTech, Inc.
Wisconsin Coil Spring, Inc.
Wolverine Coil Spring Co.
Zapp Precision Strip, Inc.
ZAPP Precision Wire
Rod Coalition Company List merge.xlsx
Association
AWPA, CDWRC
WFA
WFA
AWPA
SMI
SMI
SMI
AWPA
Page 14
801 North Fairfax Street
Suite 211
Alexandria, VA 22314-1757
AMERICAN
WIRE
PRODUCERS
ASSOCIATION
“Steel Wire and Wire Products
for North America and the World”
Phone: 703-299-4434
Fax: 703-299-9233
Email: [email protected]
Kimberly A. Korbel
Executive Director
May 14, 2009
Mr. Tim Reif
General Counsel
Office of the US Trade Representative
600 17th Street NW
Washington, DC 20508
Dear Mr. Reif:
We appreciate the time you provided to the members and staff of the American Wire
Producers Association (AWPA) last week to review the important issue of China’s
border tax policies. It is clear that you have a comprehensive understanding of the
harm these policies are doing to all of the 750 US manufacturers that use wire rod as a
raw material, represented by the associations that signed the letter to Ambassador Kirk.
We are hopeful that when we have our conference call next week that you will have a
path by which we can help the Office of the USTR tackle this problem in a
comprehensive manner that will support the supply chain; our rod suppliers, wire
manufacturers, wire product manufacturers and our customers that manufacture
finished wire products.
Attached are some additional data that clearly outlines the magnitude of the problem in
terms of China’s increasing market share of a declining US market.
In the meantime, if you or any of your colleagues at USTR have questions, please do
not hesitate to contact Kimberly Korbel at the AWPA office.
Sincerely,
Walter Robertson, III
AWPA President
CC: Coalition Participants
Attachment
20GRGT011
AMERICAN WIRE PRODUCERS ASSOCIATION
Market Share of US Wire and Wire Products Shipments
2003 to 2008
US Domestic Shipments
Imports - All Countries
Imports - China
70.0%
60.0%
Metric Tons
50.0%
40.0%
30.0%
20.0%
10.0%
0.0%
2003
2004
20XLGR050 China Imports 2003-08 to USTRMarket Share
2005
2006
2007
2008
AMERICAN WIRE PRODUCERS ASSOCIATION
Imports from China 2003 to 2008
Rod, Wire and Wire Products
Net Tons
1,400,000
1,200,000
Carbon Wire
Alloy Wire
Wire Strand
1,000,000
Metric Tons
Wire Rope
Other Wire
Products
800,000
All Rod
Nails
600,000
Fasteners
400,000
200,000
0
2003
2004
2005
20XLGR050 China Imports 2003-08 to USTRRod, Wire & Wire Products
2006
2007
2008
Product Category
Carbon Rod
Alloy Rod
Stainless Rod
All Rod
AMERICAN WIRE PRODUCERS ASSOCIATION
Rod, Wire and Wire Products Imports 2003 to 2008
Metric Tons
2003
2004
2005
2006
228,144
699,164
622,062 1,228,389
175
414
2,907
16,481
1,947
4,082
4,404
4,641
230,266
703,660
629,373 1,249,511
Wire & Wire Products
Carbon Wire
Stainless Wire
Alloy Wire
All Wire
89,708
3,744
68
93,520
117,360
6,139
896
124,395
168,665
6,212
584
175,461
145,867
6,235
17,839
169,941
111,939
4,815
20,376
137,130
21,007
18,521
237,472
236,065
73,869
22,243
356,011
317,336
96,722
29,986
501,646
405,148
213,665
35,053
630,143
517,308
209,473
3,593
569,953
491,621
234,497
41,339
309,769
475,780
133
43,327
43,493
5,788
11,143
103,884
28
58,866
58,055
5,319
25,681
147,949
352
96,921
67,092
5,152
45,258
214,775
988
115,237
74,247
5,601
50,610
246,683
1,202
105,697
81,877
7,385
44,927
241,088
1,661
84,756
82,832
6,806
29,036
205,091
675,229
3,642,274
7,684,536
1,010,928
4,380,326
9,256,766
1,372,672
4,507,960
7,399,576
1,818,313
4,810,985
8,567,479
1,685,669
4,338,285
6,668,033
1,403,606
3,769,018
5,816,159
US Market Share Wire and Wire Products
Imports - China
Imports - All Countries
US Domestic Shipments
20XLGR050 China Imports 2003-08 to USTR Data Table
2008
144,465
28,282
4,043
176,790
55,512
2,665
103
58,280
Wire Strand
Wire Rope
Nails
Fasteners
Other Wire Products
Barbed Wire
Grill Netting &Fencing
Chain
Pins
Springs
Other Wire Products
Wire & WP Imports-China
Wire & WP Imports-All Countries
US Apparent Consumption, W&WP
2007
534,832
3,595
3,552
541,979
8.8%
47.4%
52.6%
10.9%
47.3%
52.7%
18.6%
60.9%
39.1%
21.2%
56.2%
43.8%
25.3%
65.1%
34.9%
24.1%
64.8%
35.2%
801 North Fairfax Street
Suite 211
Alexandria, VA 22314-1757
AMERICAN
WIRE
PRODUCERS
ASSOCIATION
Phone: 703-299-4434
Fax: 703-299-9233
Email: [email protected]
“Steel Wire and Wire Products
for North America and the World”
Kimberly A. Korbel
Executive Director
China’s Border Tax Policies Are Distorting Trade
In Violation of Its WTO Obligations
The Problem
The American steel wire and wire products industry is facing an extraordinary distortion
of trade patterns as a consequence of border tax measures adopted by the Chinese
government that violate its international trade obligations. China has imposed export
taxes on carbon steel wire rod while granting VAT rebates on finished downstream wire
products, creating distortions that directly and adversely impact the US manufacturers
of these products.
The use of export taxes and licenses to limit exports of wire rod is a violation of China’s
Protocol of Accession to the World Trade Organization (WTO). In addition, China’s
value added tax (VAT) rebates subsidize the export of downstream wire products. The
imposition of export taxes on wire rod encourages the retention of this basic material
input in China, resulting in greater availability and lower input costs for Chinese wire and
wire products manufacturers. Together, these programs manipulate China’s tax laws to
favor Chinese industries which export downstream products to the United States and
other countries. These practices violate the commitments made by the Chinese
government when it joined the WTO.
The specific violations of China’s international obligations are:
(1) China’s export taxes on wire rod violate section 11.3 of China’s Protocol of
Accession to the WTO;
(2) China’s export licensing requirements on wire rod violate Article XI:1 of the
GATT and Part I, Section 7.2 of China’s Protocol of Accession;
(3) China’s differential tax scheme is a prohibited export subsidy that violates
Article 3 of the SCM Agreement, Articles VI and XVI of the GATT, and Part I, Section
10.3 of China’s Protocol of Accession to the WTO;
(4) China’s discriminatory, steel-specific border measures are causing adverse
effects to the interests of the United States and as such also constitute an actionable
subsidy under Articles 5 and 6.3 of the SCM Agreement; and
(5) China’s differential export tax scheme, export taxes on wire rod, and export
licensing requirements for wire rod further nullify or impair benefits of the United States
within the meaning of Article XXIII:1(b) of the GATT.
The member companies of the American Wire Producers Association (AWPA) have
been working with US trade officials to try to resolve this problem.
China Border Tax Policies
May 2009
Page 2
Background
Preliminary discussions with the USTR led to the participation of an AWPA member
company representative in the meeting of the US-China Steel Dialogue which was held
in Beijing in October 2008. The USTR agreed that our industry has a unique story to tell
and encouraged the AWPA to participate in the Steel Dialogue.
The AWPA representative made a presentation regarding recent trends in exports of
wire rod and representative wire products from China. He pointed out that wire rod
exports to the United States dropped significantly from 2007 to 2008, while at the same
time exports of wire and wire products – already sizeable – increased significantly.
Additionally, the average unit values of the Chinese wire products are below the
average unit values of all other countries.
Status
In 2007, the Chinese government eliminated VAT rebates on exports of wire rod, but it
continued to provide for VAT rebates on exports of some wire and wire products. On
January 1, 2008, China increased the export tax on wire rod from 10 to 15 percent.
There are no similar export taxes on downstream wire products.
During the meeting in Beijing in October 2008, the Chinese government acknowledged
that a distortion did exist but claimed that it had the right to limit exports of wire rod due
to an alleged adverse impact of increased wire rod production on the country’s
environment. USTR officials countered that this argument is not plausible because
domestic rod production within China was not being reduced. Following the meeting,
there was some optimism by both US trade officials and AWPA’s representative that the
Chinese government was likely to modify its export tax scheme.
Two weeks after the meeting in Beijing, the Chinese government did announce the
removal of export taxes on many steel products, but it did NOT remove or reduce the
export tax on wire rod. Just after this announcement, representatives of the AWPA met
with the USTR staff and discussed the possibility of a WTO challenge of China’s export
tax on wire rod.
However, in January 2009, the AWPA had a follow-up meeting with USTR officials, and
it became apparent that the USTR was not prepared to move against China’s tradedistorting border tax scheme. The USTR stated that it was not yet in a position to refute
a potential legal defense by the Chinese government based on environmental concerns.
USTR officials subsequently sent to the AWPA a list of questions seeking information
on Chinese national, provincial, and local policies and programs on the environment,
including the conservation of raw material inputs in steel production. Such information
would be very difficult and expensive to obtain, even if it were available.
20GRWP09008
China Border Tax Policies
May 2009
Page 3
On April 1, 2009 VAT rebates were raised to 9% and 13% on some selected
downstream products including chain; grates, cookers and barbecues; and table,
kitchen or other household articles.
AWPA Position
It is the AWPA’s position that the Chinese government’s disparate treatment of wire rod
in relation to other basic steel products undermines any potential defense based on
environmental concerns. If the Chinese authorities were motivated by such concerns,
why did they remove the export taxes on other steel products which present the same
environmental concerns and, in fact, are likely to have an even greater adverse impact
on the environment than the production of wire rod? Moreover, wire rod continues to be
produced in China – it just remains in China, rather than being available for export. It
appears that China’s actions are driven not by concerns about the environment but by a
commercial calculation to promote the production and exportation of downstream wire
and wire products manufactured from wire rod. These downstream products have
higher added values than wire rod, and the Chinese companies that make them employ
large numbers of workers. By pointing to the unjustified disparate treatment of wire rod
compared with other basic steel products, we believe that the USTR can effectively
refute any legal defense that the Chinese government may raise based on
environmental issues.
Future Actions
Consequently, the AWPA urges the USTR to take appropriate action to end China’s
unlawful and trade-distorting practices through the disparate tax treatment of wire rod
on the one hand and wire products on the other. Specifically, the AWPA believes that
the United States should initiate a WTO complaint against China, and it is important to
act now before further damage is done to the US wire and wire products industry, its
workers, and its communities.
20GRWP09008