US Trade Commission has made decision by US Department of Commerce to impose heavy tariffs on imports from Israel • Reason: Fear of government subsidizing price of resource here
Chemicals magnesium plant for Israel // Photo: Dudu Grinshpan
Hundreds of workers in the south can breathe a sigh of relief, following the decision of the US Trade Commission, which is first published here, not to impose a levy on ICL's magnesium plant (Israel Chemicals).
The decision of the Trade Commission was adopted following the intervention of high-ranking officials in Israel, including Israeli Ambassador to Washington Ron Dramer and Economy and Industry Minister Eli Cohen.
In November 2018, following a complaint filed by the United States' largest magnesium manufacturer - US Magnesium - the US Department of Commerce opened an anti-dumping investigation against Dead Sea Magnesium, a subsidiary of ICL, alleging that it sells magnesium at a lower price than its selling price in Israel. Investigation of subsidy against the Israeli government on suspicion that the subsidy it gives ICL in the production of magnesium is allegedly a surge in sales, thus causing damage to the US manufacturer.The results of the US Commerce Department investigation determined that the levy levy of 220% and subsidy levy of 13.77%.
The Dead Sea Magnesium Company employs approximately 400 workers directly and another 1,000 indirectly in the Dead Sea and Dimona area. The US market is a significant market for the company's exports, and therefore, if the US Trade Commission had indeed determined that the US market had been harmed and would have taken the accompanying penalties - this would have caused a dramatic damage to the plant, to the point of fear of its closure and layoffs.
Last Wednesday, the International Trade Commission decided unanimously to overturn the Office of Commerce's decision, stating that ICL did not harm the US magnesium industry, and so it was decided to remove the levies.
Minister of Economy and Industry MK Eli Cohen said: "The professional and determined activities of the Foreign Trade Administration, with other government officials, and with the help of Israeli Ambassador to the United States Ron Dramer, succeeded in removing the threat of impoundment levy, if implemented, could put real danger The activities of the plant. The decision of the US Trade Commission strengthens its trade relations with our US ally. "