Schagrin Associates Scores Preliminary Win With First-Ever Currency Undervaluation Subsidy Claim
November 3, 2020 – The U.S. Department of Commerce (Commerce) today announced its preliminary affirmative determination that exports of passenger and vehicle light truck tires (PVLT) from Vietnam are being subsidized. This ruling is notable because it is the first finding by Commerce that any country has manipulated its currency, thereby giving its exporters an unfair advantage. Commerce announced new rules earlier in 2020 allowing currency undervaluation to be considered as an illegal subsidy, and Schagrin Associates is the first law firm to have made an allegation under the new rules.
As a result of the preliminary ruling, imports of PVLT from Vietnam will be subject to cash deposits ranging from 6.23 to 10.08 percent, ad valorem.
Schagrin Associates filed the subsidy case against Vietnam on May 13, 2020, together with antidumping cases against Korea, Taiwan, Thailand, and Vietnam. The preliminary determinations in the companion antidumping cases are due by December 29, 2020. Commerce is scheduled to issue its final determinations in all five proceedings by March 14, 2021, although this deadline may be extended.
Schagrin Associates prepared the cases on behalf of the United Steelworkers, which represents workers at tire plants in eight states: Alabama, Arkansas, Indiana, Kansas, Ohio, North Carolina, New York and Virginia.