Epoxy Market Calls for Special Dumping Treatment - Moolenaar

Congressman John Moolenaar called on the Commerce Department to apply the "special rules for costs" in evaluating imports of Epoxy resin from China that compete with Dow Chemical.

"Special rules"  empower Commerce to adjust reported costs submitted by foreign producers and counter overcapacity and market distortion when they occur in the American economy.

"As I evaluate the damaging effects of PRC overcapacity, I believe it is critical that as part of its analysis in antidumping investigations, the Department of Commerce (Commerce) should apply the special rules for costs under 19 U.S.C. § 1677b(f)(1)(A) more broadly.."

"Given the PRC’s widespread overcapacity and the subsequent market distortions, I believe that this provision should be applied rigorously to ensure that the costs submitted by foreign producers do not unfairly skew antidumping calculations."

"It is vital that Commerce use all the tools Congress has given it to address this challenge. Not only do I believe the evidence strongly supports a deeper inquiry by Commerce —both under the special rules for costs and other trade remedy provisions—but also that these quantitative measures can be used as a tool for other industries as well. "

"Despite their falling utilization rates, these producers continued to expand their capacity, flooding the U.S. market with excess product. Given these facts, I believe it is important for Commerce to apply the special rules for costs, because the reported costs of these foreign producers likely fail to reflect the true costs of production under normal market conditions."

Prior to his election to the House of Representatives, Moolenaar worked as a chemist for Dow Chemical, headquartered in his hometown of Midland, Michigan, just outside his current legislative district.

View the full letter HERE