Petition QMAA 15 Sept | Page 6

PUBLIC VERSION
B.
The Domestic Industry Is Seriously Injured Under the Safeguards Standard...... 36
1.
Significant Idling of Production Facilities( 19 C. F. R. § 206.14( e)( 1)( i))........ 36
2.
Inability of a Significant Number of Domestic Producers to Carry Out
Domestic Production at a Reasonable Level of Profit( 19 C. F. R. §
206.14( e)( 1)( ii))................................................................................................ 38
3.
Significant Unemployment or Underemployment in the Domestic Industry
( 19 C. F. R. § 206.14( e)( 1)( iii)).......................................................................... 39
C.
The Domestic Industry Is Threatened with Further Serious Injury...................... 40
1.
Decline in Sales and / or Market Share( 19 C. F. R. § 206.14( e)( 2)( i))............... 40
2.
Downward Trend in Production( 19 C. F. R. § 206.14( e)( 2)( i))........................ 41
3.
Declining Profits and Productivity( 19 C. F. R. § 206.14( e)( 2)( i)).................... 41
4.
Declines in Employment and Wages( 19 C. F. R. § 206.14( e)( 2)( i))................ 42
5.
A higher and growing inventory( 19 C. F. R. § 206.14( e)( 2)( i))....................... 42
6.
Inability to Generate Capital for Investment and Research and Development
( 19 C. F. R. § 206.14( e)( 2)( ii))........................................................................... 42
7.
Exports Are Driven to the U. S. Market( 19 C. F. R. § 206.14( e)( 2)( iii)).......... 43
8.
Changes in Levels of Prices, Production, and Productivity( 19 C. F. R.
§ 206.14( e)( 3)).................................................................................................. 43
D.
Conclusion on Injury............................................................................................. 46
VI. IMPORTS OF QSP ARE A SUBSTANTIAL CAUSE OF SERIOUS INJURY, OR
THREAT THEREOF, TO THE DOMESTIC INDUSTRY.......................................... 46
A.
Legal Framework.................................................................................................. 46
B.
Conditions of Competition.................................................................................... 47
1.
Demand Conditions.......................................................................................... 48
2.
Supply Conditions............................................................................................ 50
3.
Substitutability.................................................................................................. 52
C.
Imports Are a Substantial Cause of Serious Injury and Threat of Serious
Injury to Domestic Producers............................................................................... 53
1.
Imports Have Captured Sales and Market Share at the Direct Expense of the
Domestic Industry............................................................................................ 54
2.
Imports Have Undersold Domestically Produced QSP by Substantial Margins
.......................................................................................................................... 54
3.
Imports Are the Most Important Factor Causing Serious Injury to the
Domestic Industry............................................................................................ 56
VII. RELIEF SOUGHT AND PURPOSE THEREOF( 19 C. F. R. § 206.14( g))...................... 57
ii