On August 5, the Clinton Administration announced a Steel Action Plan, which is intended to supplement the President's earlier Comprehensive Plan for Steel. According to a statement from the White House, the Plan contains a number of measures that address those factors, which pose "continuing risks for the health and vitality of US steel communities and companies."
The Steel Action Plan includes the following principal components: (1) tough enforcement of existing trade laws; (2) a global conference on excess capacity in the steel industry; (3) bilateral negotiations with Japan, Korea, Russia, Ukraine and other key steel-exporting countries to address unfair trade practices and excess capacity; (4) analysis of foreign trade barriers to steel products; (5) meetings between the Commerce Department and the domestic steel industry to review import pricing and the effect on the domestic market; (6) promotion of US exports of steel products; and (7) federal funding for worker retraining programs.
The Administration announced its newest steel initiative following meetings with the chief executives of the integrated steel sector and representatives of the AFL-CIO and the United Steelworkers of America. Although the labor leaders have generally responded favorably to the plan, the industry spokesmen have been less enthusiastic, and several members of the Congressional Steel Caucus (including Representative Ralph Regula) have expressed disappointment that the new plan does not go far enough to protect the domestic steel industry.
What is most significant about the Administration's plan is that it does not support any changes to the existing trade laws. Earlier this summer there were reports that the Administration was prepared to compromise on some of the proposed legislation to strengthen the antidumping and countervailing duty laws. The Administration may now believe that the worst of the so-called "steel crisis" has passed and that the legislative efforts of Big Steel and the unions are losing momentum as the Congress moves to more pressing election-year issues.
The practical effect of the new Steel Action Plan remains to be seen. The Administration will follow through on its international initiatives, and it will continue to consult with the domestic industry and the unions. We can expect the Commerce Department to continue its vigorous prosecution of antidumping and countervailing duty cases. There will be more press releases as the Commerce completes its current investigations and announces dumping and subsidy margins against imported steel. However, it does not appear from this latest steel plan that the President or his principal trade advisors intend to make any substantive changes in the trade laws or trade policies at this time.
Back to Wireline Contents
American Wire Producers Association
801 North Fairfax Street, Suite 211
Alexandria, VA 22314-1757
Tel (703) 299-4434 | Fax (703) 299-9233 | E-mail info@awpa.org | Web: www.awpa.org
