Trade Cases
![](https://www.steelmarketupdate.com/wp-content/uploads/sites/2/media/k2/items/src/04de988c15a3db64519b38241f7de480.jpg)
CRU: Official “Phase 1” Deal Clears the Way for Expanded Trade in 2020
Written by Lisa Morrison
December 15, 2019
By CRU Principal Economist Lisa Morrison
On Dec. 13, U.S. Trade Representative, Robert Lighthizer, released a statement indicating that the U.S. and China had come to terms on a “phase 1” trade deal.
The opening sentence of the USTR press release states, “The United States and China have reached an historic and enforceable agreement on a Phase One trade deal that requires structural reforms and other changes to China’s economic and trade regime in the areas of intellectual property, technology transfer, agriculture, financial services, and currency and foreign exchange.”
Critics will surely point to the lack of any specifics on progress made on the structural issues, which are at the heart of the U.S. Section 301 investigation with China. However, these are not issues that are easily resolved and any progress on the “easy wins” which reduces trade tension and defers further tariff escalation is certainly welcome.
Reporting from Reuters provides more detail than the USTR statement and indicates the deal will be signed during the first week of January. The key points are as follows:
• U.S. cuts the tariff rate from 15 percent to 7.5 percent on $120 bn in imports levied as of Sept. 1. The 25 percent tariffs scheduled for Dec. 15 on the remaining $250bn in imports from will not be implemented.
• China’s retaliatory tariffs scheduled to go into force on Dec. 15 are suspended.
• China will buy an additional $32 bn in U.S. agricultural goods—wheat, corn and rice— over the next two years. USTR indicated China will also increase purchases of U.S. manufactured goods, energy and services, but offered no details. China purchased $24bn worth of U.S. ag products in 2017.
Data on the value of trade between the U.S.-China trade since Q3 2018 indicates that imports have declined by $22bn y/y and exports are lower by $2bn y/y. The U.S. trade deficit with China (right hand chart) indicates the gap has narrowed by $51bn thus far in 2019, or by 14.7 percent.
Request more information about this topic.
Learn more about CRU’s services at www.crugroup.com
Lisa Morrison
Read more from Lisa MorrisonLatest in Trade Cases
![](https://www.steelmarketupdate.com/wp-content/uploads/sites/2/images/Featured_News_Icons/galvanized_coil.png)
Leibowitz: The consequences of a new barrage of trade cases on coated steel
Domestic steel producers and the United Steelworkers (USW) union filed a barrage of trade cases last week. This is hardly news. Ever since the Commerce Department ruled that Vietnam is still treated as a nonmarket economy (NME) for antidumping purposes, many in the business expected new cases on the product that Vietnam excels at—“corrosion-resistant steel.” Nor is it a surprise that these cases roped in nine countries in addition to Vietnam: Australia, Brazil, Canada, Mexico, the Netherlands, South Africa, Taiwan, Turkey, and the United Arab Emirates. All these countries rank in the top ten exporters of corrosion-resistant steel to the United States. These petitions are a broadside against coated flat-rolled steel imports.
![](https://www.steelmarketupdate.com/wp-content/uploads/sites/2/images/Featured_News_Icons/investigate.png)
Coated trade case alleges hefty dumping margins
Domestic mills have alleged substantial dumping margins in the trade case targeting imports of corrosion-resistant steel.
![](https://www.steelmarketupdate.com/wp-content/uploads/sites/2/images/Featured_News_Icons/fist.png)
US mills file sprawling trade case against coated imports from 10 nations
US mills have filed or soon will file a sprawling trade petition against imports of coated flat-rolled steel from 10 countries. The petition seeks anti-dumping margins against Canada, Mexico, Brazil, the Netherlands, Turkey, the United Arab Emirates, Vietnam, Taiwan, Australia, and South Africa. It also seeks countervailing duty margins against Canada, Mexico, Brazil, and Vietnam. That’s according documents dated Sept. 5 and addressed to Commerce Secretary Gina Raimondo and International Trade Commission (ITC) Secretary Lisa Barton.
![](https://www.steelmarketupdate.com/wp-content/uploads/sites/2/media/k2/items/src/cbd2ad03f626e665deb71b2742b25bbb.jpg)
Steel Summit 2024: Trade issues abound ahead of election
Trade is always front and center in an election year. And 2024 is no different. There is no shortage of issues, with questions like the sale of U.S. Steel to Japan’s Nippon Steel, potential cracks in the USMCA, and Chinese overcapacity dominating the headlines. But how do you distinguish between issues that might just last until November, and what are the crucial questions that could affect your business for years to come?
![](https://www.steelmarketupdate.com/wp-content/uploads/sites/2/images/Featured_News_Icons/fist.png)
US senators urge reduction to S. Korean OCTG quota
https://www.brown.senate.gov/newsroom/press/release/sherrod-brown-casey-fetterman-biden-administration-level-playing-field-american-octg-industry