recent experience of the united states international trade commission: caseload trends and the...
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Recent Experience of the United States International Trade Commission: Caseload trends and the effects of the economic downturn
Shara L. AranoffChairmanU.S. International Trade Commission
2009 Seoul International Forum on Trade Remedies
Korea Trade CommissionJuly 3, 2009
Disclaimer
• The comments I’m making today are my own.
• They should not be construed as representing the views of the USITC or the United States Government.
2
Investigative functions of the ITC• Conduct import injury investigations in
antidumping, countervailing duty and safeguards cases (Dept. of Commerce determines dumping margin)
• Oversee the Section 337 process regarding intellectual property rights
• Conduct studies on trade issues
3
Largest U.S. trading partners, 2008 (value of two-
way trade in goods)Canada $ 596 billion
China $ 409
Mexico $ 368
Japan $ 206
Germany $ 151
United Kingdom$ 112
Korea $ 81
4
Countries against which the United States has the most AD/CVD ordersChina 90
India 22
Japan 20
Korea 20
Taiwan 16
Italy/Brazil 14
5
0.0
0.5
1.0
1.5
2.0
1980
1984
1988
1992
1996
2000
2004
2008
Sha
re o
f U
.S.
impo
rts
unde
r A
D/C
VD
ord
er (
perc
ent)
0
500
1,000
1,500
2,000
2,500
mill
ions
of
dolla
rs
Value of total U.S. imports (millions)
Share of trade under AD/CVD order
(percent)
Source: USITC
A small share of U.S. imports is under AD/CVD orders
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A small share of Chinese imports is under AD/CVD orders
0.0
0.2
0.4
0.6
0.8
1.0
1.2
1980
1984
1988
1992
1996
2000
2004
2008
Sha
re o
f U
.S.
impo
rts
from
Chi
na u
nder
AD
/CV
D o
rder
(p
erce
nt)
0
50
100
150
200
250
300
350
400
mill
ions
of
dolla
rs
Share of trade under AD/CVD order (percent)
Value of U.S. imports from China (millions)
Source: USITC
7
Countries imposing the most AD/CVD orders against U.S. exports
China 16
Mexico 13
India 12
Brazil 7
Canada 5
EU/So. Africa 4
8
Worldwide AD Orders (as of 12/31/08)
Antidumping Petitioner Antidumping SubjectUSA 249 China 329
India 178 Korea 85
European Union 128 Taiwan 74
Turkey 107 Japan 64
China 98 USA 68
Korea (11th) 33 India 54
9
Worldwide CVD Orders (as of 12/31/08)
CVD Petitioner CVD SubjectUSA 37 India
20European Union 16 China 11Canada 10 Brazil 4South Africa 3 Indonesia
4Mexico 2 Korea 4Korea 0 Italy 3
10
U.S. sectors with the most AD/CVD orders in place (as of 6/15/09)
Iron and steel 141
Chemicals 51
Miscellaneous manufactures 45
Agricultural products 29
Non-ferrous minerals and metals 27
11
AD/CVD case filings, 1980 - 2008
12
0
20
40
60
80
100
120
140
160
180
200
1980
1982
1984
1986
1988
1990
1992
1994
1996
1998
2000
2002
2004
2006
2008
Cases filed Affirmative Negative Terminated
Title VII case filings at USITC, 1980-2008N
um
be
r o
f ca
ses
Recession of 2001
Recession of 2008
Recession of 1990-91
Recession of 1981-82
Current AD/CVD caseload (as of June 15, 2009)
Preliminary phase investigations 6
Final phase investigations 6
Full sunset reviews 11
Safeguard investigations 1
Total active investigations 24
13
U.S. AD/CVD investigations and orders involving Korean firms
Final phase investigations 1
Full sunset reviews 1
Orders involving steel products 15
Total orders (on 16 products) 20
14
U.S. AD/CVD comparison: Korea vs. China
Korea: 2 active investigations; 20 orders in place
China: 12 active investigations; 90 orders in place
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Appeals and dispute settlements of USITC AD/CVD determinations
• First appeal is to the Court of International Trade in New York (roughly 40 percent of decisions get appealed to the USCIT)
• Second level of appeal is to the Court of Appeals for the Federal Circuit in WDC
• WTO or NAFTA dispute settlement also may be options in some cases16
Appeals and dispute settlements of USITC AD/CVD determinations
• 13 appeals pending at the USCIT
• 5 appeals pending at the Federal Circuit
• 2 disputes pending before a NAFTA panel
• No dispute pending before the WTO
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Intellectual property investigations (section 337)
• Used to address imports that infringe U.S. patents, copyrights or trademarks
• Cases are tried by administrative law judges (ALJs); the Commission reviews their determinations
• About 40-50 percent of the cases settle prior to the conclusion of litigation 18
About section 337 • If a violation is found, the remedy could be:
• an exclusion order, under which Customs would prevent the import of infringing goods; and/or
• a cease and desist order, which would prevent named respondents from selling inventories of infringing goods, etc. 19
About section 337• The Commission intends to finish all Sec. 337 investigations within 12-15 months
• Usage of the Sec. 337 process has been rising
• The ongoing increase in workload may make the short timeframe infeasible
• Sec. 337 process requires more resources
20
Number of new Sec. 337 cases, and those involving Korea
Fiscal Year Total Korea 2003 19 1
2004 27 3
2005 25 3
2006 34 6
2007 31 5
2008 43 8
21
Sec. 337 activity involving Korea• 13 investigations of products from Korea, all involving allegations of patent infringement
• 3 investigations in which Korea is the complainant (1 by LG Electronics, 2 by Samsung)
• Korea is the most active foreign user of sec. 337.
• Samsung has been, and continues to be, a respondent in some patent infringement cases, and a complainant in others.
22
Litigation involving Sec. 337 determinations
• 2005: 15 appeals pending
• 2006: 9 appeals pending
• 2007: 34 appeals pending
• 2008: 21 appeals pending
23
Economic downturn, patent filings, and patent litigation
• Data from the Patent and Trademark Office show that original utility patent application filings have slowed in FY2009.
• Yet patent infringement cases at the ITC are at an all time high, 43 new cases filed in 2008.
• Intellectual property is one of the most important categories of assets held by many firms.
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Industry and economic investigations at the USITC
• Analysis of trade and competitiveness issues, including section 332 reports
• Independent research on various issues (e.g., enhanced economic modeling)
• Analysis of probable economic effects ofproposed trade agreements
• Currently 15 active investigations25
Report on Korea-U.S. FTA
• Assess economy-wide and sectoral effects of the FTA
• Delivered on Sept. 20, 2007
• Use a variety of analytical methods, including general and partial equilibrium
models
26
Report on Korea-U.S. FTA
• Report released to the public in September of 2007
• The key finding was that both the United States and Korea would experience modest but overall positive economic effects from a bilateral FTA.
• The empirical analysis captured only the barriers that could be easily measured (e.g., tariffs, tariff rate quotas) but did not include trade barriers in services and other nontariff barriers such as regulatory measures.
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Historically, world trade volumes and incomes have grown together
-2
0
2
4
6
8
10
1950-60 1960-70 1970-80 1980-90 1990-00 2000-07 2001 2002 2003 2004 2005 2006 2007
Volume of total ex ports GDP
Growth rate of volume of world merchandise exports and gross domestic product, 1950-2007
28
But recent trade volumes have plummeted
Quarterly world export developments since 2005 (2005Q1=100, in current US dollars)
29
World trade plunged by two-thirds over 1929-1933
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Recent trends in international trade Dramatic drop in world trade, and WTO forecasts at
least a 10 percent decline in global export volumes for 2009
GDP contractions have been minor compared to trade 5 or 6 percent in some countries compared to 30
percent for trade contractions. Trade contraction due to decrease in demand and to a
lesser extent credit crunch These effects dwarf any from trade remedies
But still not comparable to experience in the early 1930s
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Decomposing Chinese Electronics Exports to the US value increased from $22 bil to Decomposing Chinese Electronics Exports to the US value increased from $22 bil to $78 bil between ’02 and ’06 or from 31% to 39% of total US imports - potentially $78 bil between ’02 and ’06 or from 31% to 39% of total US imports - potentially substantial indirect effects on Koreasubstantial indirect effects on Korea
Domestic and Foreign Value Added in Selected Electronic Product Exports to the US
0
5,000
10,000
15,000
20,000
25,000
Products, 2002 - 2006
To
tal E
xp
ort
s t
o U
S, M
illio
ns o
f d
ollars
DVA
FVAElect. Machinery
Telecom
Computers
Comp. Periperal
Elect. Elements and devices
TVs, etc
Other comm. Equip.
Instruments
USITC Resources Extensive resources are available on the USITC
website: www.usitc.gov The USITC’s Interactive Tariff and Trade Data
web (http://dataweb.usitc.gov/) provides international trade statistics and U.S. tariff data to the public full-time and free of charge.
The USITC Website also includes case files and statistics for trade remedy proceedings and extensive economic and industry research materials.
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THE END