U.S. close to limiting wind towers from China

The U.S. Department of Commerce on Tuesday announced its affirmative final determinations in duty investigations against utility scale wind towers from China and Vietnam.

The move increases the possibility of imposing punitive duties on the products.

Chinese and Vietnamese producers and exporters sold utility scale wind towers in the U.S. market at dumping margins ranging from 44.99 percent to 70.63 percent, and 51.5 percent to 58.49 percent, respectively, the department said.

It said Chinese producers and exporters also received countervailable subsidies of 21.86 percent to 34.81 percent.

Utility scale wind towers refer to steel towers that support engines and rotor blades for use in wind turbines with electrical power generation capacities in excess of 100 kilowatts.

Imports of utility scale wind towers from China and Vietnam were valued at an estimated 222 million U.S. dollars and 79 million dollars in 2011, respectively, according to the U.S. Department of Commerce.

The U.S. International Trade Commission (ITC) is scheduled to make its final determination on or before Jan. 31, 2013.

If the result affirms that the products cause material injury or threat to the U.S. industry, the department will issue antidumping duty (AD) and countervailing duty (CVD) orders. If the ITC makes a negative determination, the investigations will be terminated.

The department initiated the AD and CVD investigations in January in response to a petition filed last December by the Wind Tower Trade Coalition.

The U.S. move came at a time when protectionism is making a comeback in America amid a sluggish economic recovery. It is widely believed that such actions would hurt U.S.-China trade relations that are increasingly critical to the global recovery.

The Chinese Ministry of Commerce has repeatedly urged the United States to abide by its commitment against protectionism and work together with China and other members of the international community to maintain a free, open and just international trade environment.