Trade Cases

US Steel Files Section 337 Trade Complaint Against China

Written by John Packard

April 26, 2016

WASHINGTON, April 26, 2016 /PRNewswire/ — Today United States Steel Corporation (NYSE:X) filed a complaint with the U.S. International Trade Commission (ITC) to initiate an investigation under Section 337 of the Tariff Act of 1930, against the largest Chinese steel producers and their distributors.  The 337 complaint alleges illegal unfair methods of competition and seeks the exclusion of all unfairly traded Chinese steel products from the U.S. market.

The complaint alleges three causes of action: the illegal conspiracy to fix prices, the theft of trade secrets and the circumvention of trade duties by false labeling.

“We have said that we will use every tool available to fight for fair trade,” said President and Chief Executive Officer Mario Longhi.  “With today’s filing, we continue the work we have pursued through countervailing and antidumping cases and pushing for increased enforcement of existing laws.”

Section 337 provides relief in light of specific actions, the threat or effect of which is to destroy or substantially injure a domestic industry, prevent the establishment of such an industry, or restrain or monopolize trade and commerce in the U.S.  The actions covered under Section 337 include the infringement of intellectual property rights (patents and copyrights) as well as unfair methods of competition and unfair acts in the importation and sale of products in the U. S. The ITC remedy is the exclusion of the unfairly traded products from the U.S. market.

The International Trade Commission has up to 30 days to evaluate the petition for relief and decide whether to initiate the case.  If the matter proceeds, an administrative law judge is then assigned to the case.  During the evidentiary discovery process, the parties may seek the issuance of nationwide subpoenas and orders for the production of relevant documents.

Source: US Steel press release

John Packard

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