The U.S. International Trade Commission (ITC) today determined that revoking the existing antidumping duty order on pure magnesium from China would be likely to lead to continuation or recurrence of material injury within a reasonably foreseeable time, but that revoking the existing countervailing duty orders on pure and alloy magnesium from Canada would not.

As a result of the Commission's affirmative determination, the existing order on imports of pure magnesium from China will remain in place. As a result of the Commission's negative determinations, the existing orders on imports of pure and alloy magnesium from Canada will be revoked.

All six Commissioners voted in the affirmative with respect to China and in the negative with respect to Canada.

Today's action comes under the five-year (sunset) review process required by the Uruguay Round Agreements Act. See the attached page for background on this five-year (sunset) review.

The Commission's public report Pure and Alloy Magnesium from Canada and Pure Magnesium from China (Inv. Nos. 701-TA-309A and 309B and 731-TA-696 (Second Review), USITC Publication 3859, June 2006) will contain the views of the Commission and information developed during the reviews.

Copies may be requested after April 26, 2006, by calling 202-205-1809 or by contacting the Office of the Secretary, U.S. International Trade Commission, 500 E Street SW, Washington, DC 20436. Requests may be made by fax at 202-205-2104.

BACKGROUND

The Uruguay Round Agreements Act requires the Department of Commerce to revoke an antidumping or countervailing duty order, or terminate a suspension agreement, after five years unless the Department of Commerce and the ITC determine that revoking the order or terminating the suspension agreement would be likely to lead to continuation or recurrence of dumping or subsidies (Commerce) and of material injury (ITC) within a reasonably foreseeable time.

The Commission's institution notice in five-year reviews requests that interested parties file responses with the Commission concerning the likely effects of revoking the order under review as well as other information. Generally within 95 days from institution, the Commission will determine whether the responses it has received reflect an adequate or inadequate level of interest in a full review. If responses to the ITC's notice of institution are adequate, or if other circumstances warrant a full review, the Commission conducts a full review, which includes a public hearing and issuance of questionnaires.

The Commission generally does not hold a hearing or conduct further investigative activities in expedited reviews. Commissioners base their injury determination in expedited reviews on the facts available, including the Commission's prior injury and review determinations, responses received to its notice of institution, data collected by staff in connection with the review, and information provided by the Department of Commerce.

The five-year (sunset) reviews concerning Pure and Alloy Magnesium from Canada and Pure Magnesium from China were instituted on September 1, 2005.

On October 4, 2005, the Commission voted to conduct full reviews concerning Magnesium from Canada. Chairman Stephen Koplan, Vice Chairman Deanna Tanner Okun, and Commissioners Charlotte R. Lane, Daniel R. Pearson, and Shara L. Aranoff concluded that the domestic group response was adequate and the respondent group response was inadequate, but that circumstances warranted full reviews. Commissioner Jennifer A. Hillman concluded that the domestic group response was adequate and the respondent group response was inadequate and voted for expedited reviews. On December 5, 2005, the Commission voted to conduct a full review concerning Pure Magnesium from China. Vice Chairman Deanna Tanner Okun and Commissioners Charlotte R. Lane, Daniel R. Pearson, and Shara L. Aranoff concluded that the domestic group response was adequate and the respondent group response was inadequate, but that circumstances warranted a full review. Chairman Stephen Koplan and Commissioner Jennifer A. Hillman concluded that the domestic group response was adequate and the respondent group response was inadequate and voted for an expedited review.

Information concerning the reasons for the Commission's vote to conduct full reviews was published in the Federal Register on October 14, 2005, and on December 20, 2005. Those notices and records of the Commission's votes is posted on the ITC's Internet site at http://info.usitc.gov/oinv/sunset.NSF (under "Pure Magnesium - Canada (CVD) (2nd Review)," "Alloy Magnesium - Canada (2nd Review)," and "Pure Magnesium (Ingot) - China (2nd Review)").

In addition, a record of the Commission's votes to conduct full reviews is available from the Office of the Secretary, U.S. International Trade Commission, 500 E Street SW, Washington, DC 20436. Requests may be made by telephone by calling 202-205-1802.