Stinson Receives Successful Preliminary Commerce Department Ruling for Client in Twist Tie Case

11.30.2020

Partner Roy Goldberg represents the largest U.S.-based manufacturer of twist ties in a case challenging unfair trade practices by China, including use of a new U.S. law designed to allow U.S. manufacturers to challenge currency manipulation by the Chinese government. The Commerce Department recently ruled in favor of the twist tie producer, preliminarily finding that Chinese competitors were improperly benefiting from Chinese government subsidies.

"The tariffs are the type of assistance that U.S. manufacturing desperately needs to help make competition more transparent and more lawful for industries in which exports from China are present,” said Roy in the Wall Street Journal’s coverage of the ruling

He also discussed the issue of currency manipulation with Law360, saying "The currency valuation portion of the preliminary determination is fully supported in the recent findings by the U.S. Treasury Department regarding currency valuation in China, and [the client] appreciates the fact that Chinese government involvement with currency valuation to support exports is being properly recognized as a form of unlawful government subsidy."

The case is of special legal significance because it is the first time that any U.S. company has used the countervailing duty statute and regulations to challenge currency manipulation by the Chinese government. Allegations of currency manipulation by the Chinese government—which causes imports to the U.S. to be unfairly priced—have existed for many years. But earlier this year, the Commerce Department finalized a new rule which allows U.S. manufacturers to seek countervailing duties against imports from China that benefited from currency manipulation. So far, the only other case that has been filed under the new rule was against products from Vietnam.

In litigating the matter Roy has worked closely with Stinson colleague Denyse Zosa. Roy represents a wide range of clients involved in matters relating to the federal government, including international trade cases before the Commerce Department and International Trade Commission, and proceedings involving airports, the FAA, DOT, TSA and other federal agencies, as well as general commercial litigation.