As the attorney for the Diamond Sawblades Manufacturers' Coalition, an association of U.S. producers of diamond sawblades, cores and segments, I felt compelled to write and correct the possible misconceptions resulting from Brian Delahaut's Jan. 21, 2010 posting titled, "In the Interest of Fairness."
To be clear, the U.S. Department fo Commerce determined that Chinese and Korean diamond sawblades were being sold in the United States at unfair prices (i.e., being "dumped"). The extent of this unfair pricing was massive, with margins of up to 26% for Korean producers and up to 164% for Chinese producers. The U.S. International Trade Commission determined that these unfairly priced imports threaten material injury to the domestic industry. In fact, the domestic industry was injured by a loss of market share, decreasing profits, declining sales revenues and workers losing their jobs. It was as a result of the massive surge in unfairly and unjuriously priced imports from China and Korea that the current antidumping order was issued.
Congress enacted the United States' trade remedy laws to prevent foreign companies from selling their products in the United States at dumped or subsidized prices. It is no secret that unfair pricing prevents the free flow of goods, and disadvantages U.S. manufacturers and their workers. Indeed, every illegally priced import that enters the United States deals a blow to American jobs and manufacturers. When this happens, it becomes nothing short of necessary for domestic industries to bring trade remedy cases, an essential mechanism for re-establishing a level playing field.
While free trade benefits economies worldwide, free trade cannot flourish in the absence of fair trade. Unfair trade practices inevitably distort free flow of goods and ends up injuring U.S. companies and their workers.
Simply put, the full and fair enforcement of U.S. trade remedy laws is essential to ensure the continuing strength and vitality of the U.S. economy. To contend otherwise reflects a gross misunderstanding of international trade realities. At a time when U.S. companies and workers are already facing economic hardship, it is necessary to acknowledge and vigorously address the devastating impact that unfair trade has on U.S. industries and their employees.
Daniel Pickard is a partner in the international trade practice of Wiley Rein LLP in Washington, DC and is counsel to the Diamond Sawblades Manufacturers Coalition.