As the Trump administration comes into its third month, we have
clues, but must speculate on how that administration will modify
Iran sanctions, NAFTA,
foreign investment, and tariffs on China. In contrast, recently issued
executive orders shed clear light on the Trump administration's
approach to antidumping and countervailing duties (AD/CVD). (See
August 2016 blog for a general background on AD/CVD.)
Our analysis shows a clear and present need to prepare for
heightened AD/CVD enforcement. That need is signaled by the upward
trend in AD/CVD cases that preceded the current Administration, and
has been confirmed Wilbur Ross' confirmation as Secretary of
Recently Issued Executive Orders
On March 31, 2017, the Trump administration issued two Executive
Orders seeking to address the United States' trade deficit.
Both orders address AD/CVD. The Presidential Executive Order Regarding the Omnibus
Report on Significant Trade Deficits mandates that the Commerce
Department and the United States Trade Representative (USTR)
conduct a broad review of sources of the deficit. That Order also
calls for an assessment of injurious dumping.
Increase in AD/CVD Cases Preceding the Trump
As noted above, AD/CVD cases had already increased under the
Obama Administration. That increase is likely explained by the
recovery of the U.S. economy and the signing of the Trade
Preferences Extension Act of 2015. That Act significantly lowered
threshold requirements for U.S. industries to bring AD/CVD cases
against foreign competitors.
Secretary of Commerce Wilbur Ross
In addition to noting the increase in AD/CVD cases preceding the
Trump administration, we see abundant clues that Wilbur Ross, as
Secretary of Commerce, will increase AD/CVD enforcement. First,
Secretary Ross has signaled the Trump administration will increase
antidumping duties on imports of Chinese steel. Second, Secretary
Ross has stated that he plans to use the Department of
Commerce's authority to self-initiate AD/CVD cases. For
context, almost all AD/CVD cases since the early 1990s have only
been instituted after the relevant U.S. industry files a
Does The Expansion Of AD/CVD Enforcement Affect Your
Expanded AD/CVD enforcement can have widespread and varied
effects depending on your company's position in the market,
including the following:
U.S. industries suffering from unfair
trade competition may find it easier to file AD/CVD petitions, and
the likelihood of success may increase;
U.S. importers may come under
increased scrutiny as to whether imported merchandise is subject to
AD/CVD orders and may be required to assiduously ensure that all
supplier documentation is in order; and
Non-U.S. manufacturers and producers
exporting products to the United States may find that new products
fall within the purview of an AD/CVD investigation and that
products already under AD/CVD orders are more strictly
Those changes listed above are coming, and businesses that
prepare for the AD/CVD market shifts will be best positioned to
succeed in the new environment. For those reasons, we encourage
companies to examine how increased AD/CVD enforcement will affect
their supply chains and business models. We will continue to
closely watch and provide updates on key developments in this
The content of this article is intended to provide a general
guide to the subject matter. Specialist advice should be sought
about your specific circumstances.
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27 Apr 2017, Business Breakfast, Costa Mesa, United States
Please join us for Sheppard Mullin's Breakfast With Your Labor Lawyer Seminar Series. This year, you will have to face many new developments in California labor and employment laws that will significantly affect the way you run your day-to-day business operations.
Cuatrecasas and RBB Economics, in collaboration with the CNMC and Universidad Carlos III de Madrid, are organising the Third Seminar on International Developments in Private Competition Litigation, which will take place on 27 April 2017 in the Conference Hall of the CNMC.
Sheppard Mullin Antitrust & Competition Group Co-Chair Mike Scarborough will be speaking on the defendants’ perspective of managing the legal risks of international cartels in the “How Do Companies Resolve Worldwide Claims – What are the Risks and Opportunities” session.
Enjoy drinks, hors d'oeuvres, and the works of prominent female artists in one of Washington's historic landmarks, former residence of President James Monroe and current home to the Arts Club of Washington.
The evening will feature a conversation with artist Amy Flatten, whose works will be on display and can be seen here, as well as mingling with a wonderful network of professional women.
On 23 January, President Donald Trump signed an executive order to withdraw the United States from the Trans Pacific Partnership. What's left for those companies interested in doing business in the country? Our local expert explains.
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