Relief from Unfair Imports of Plastic Retail Carrier Bags to Continue for Five More Years -

On April 27, the International Trade Commission (Commission) issued the public views of its unanimous determination in favor of continuation of the relief provided by the orders on polyethylene retail carrier bags from China, Indonesia, Malaysia, Taiwan, Thailand, and Vietnam. The Commission’s finding was that revoking the orders would likely result in continuation or recurrence of material injury to the domestic industry. The Department of Commerce had previously found that dumping and subsidization (in the case of Vietnam) would likely recur if the orders were revoked. As a result, the orders will continue to be in effect for at least five more years.

A group of Malaysian producers known as the Malaysian Task Force were the only foreign producers to actively oppose continuation of the orders. Despite contrary Task Force arguments, in its determination, the Commission exercised its discretion to cumulate (i.e., aggregate) the imports from all six subject countries. The Commission found that each of the subject industries possesses excess production capacity and “depends heavily” on exports of retail carrier bags. Moreover, the bags are “highly substitutable regardless of where they are manufactured.” Thus, the Commission found that imports from all subject countries would compete in the same way in the U.S. market. In order to maximize capacity utilization, each subject country had “a similar incentive to increase exports to the United States in the event of revocation.” Producers in Malaysia were no exception. The Commission has found in the past that demand for plastic bags is highly price inelastic, i.e., low import prices do not increase consumption in the U.S. market. Rather, low import prices merely create greater price competition for existing demand.