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Patricia O'Connell
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Counsel for Maverick Tube Corporation Applauds 6-0 Affirmative ITC Injury Decision on Welded Line Pipe from China

December 22, 2008

Alan H. Price, counsel to Maverick Tube Corporation (“Maverick”) a subsidiary of Tenaris S.A., issued the following statement applauding today’s 6-0 affirmative injury determination by the U.S. International Trade Commission (“ITC”) in the antidumping and countervailing duty investigation covering certain carbon quality welded line pipe from China.

“The ITC correctly recognized that imports of welded line pipe from China were causing injury to the domestic industry and threatened to further injure the domestic line pipe industry if AD and CVD orders were not imposed,” said Mr. Price, chair of the International Trade Practice at Wiley Rein LLP in Washington, DC.  “Chinese pipe producers possess a staggering amount of excess capacity and have already saturated pipe markets around the world,” he added.  “We are pleased that the ITC has recognized that without these orders, Chinese line pipe will continue to flood the U.S. market and continue to injure a domestic industry that is already facing deteriorating market conditions.”

Mr. Price went on to note that, “Chinese line pipe imports increased by an astounding 1,400% over the period of investigation and undersold the domestic industry by wide margins.  Massive illegal subsidization by the Chinese government of hot-rolled steel — the primary input in welded line pipe — continues to perpetuate the substantial unfair pricing disparity between imported Chinese and domestic line pipe.”

Mr. Price further stated, “The Chinese government is intent on exporting its way out of the current global recession as evidenced by recent export policy changes affecting numerous products.  This order is one component for addressing Chinese trade policies on steel.”

The ITC made its final decision after a full investigation of whether imports of line pipe from China were causing or threatening to cause material injury to the domestic industry.  While the domestic industry participated fully with the ITC’s investigation, the Chinese line pipe producers ignored the ITC’s requests for information throughout the investigation.  The ITC’s decision ensures that a countervailing duty order with margins of between 35 and 40% will be imposed on all imports of Chinese line pipe.