AWPA members embarked on an aggressive grassroots lobbying effort to circumvent massive duties and/or quotas on imported steel wire rod. More than 20 companies sent over 150 letters to 98 Members of Congress requesting their assistance in reminding the International Trade Commissioners (ITC) of their need to consider the downstream industries in any decision or recommendation they make to the president on the case. The result: 15 Senators sent letters to the ITC on behalf of wire producers, including Don Nickles (R-OK), the Assistant Majority Leader; along with 20 Representatives from the House. Chairman of the Finance Committee William Roth (R-DE) has sent a letter to the president urging him to support the wire producing industries. We are continuing to work with your Senators and Representatives on this issue.
In addition, numerous AWPA member company representatives came to Washington, DC to testify at both the ITC remedy hearing and at the Trade Policy Staff Committee (TPSC), chaired by the US Trade Representative's (USTR). Members of the TPSC will make will make the final recommendation to the president on what, if any, remedy to give steel wire rod producers.
The AWPA position includes these facts -- market conditions are already improving in the absence of any artificial import restrictions, second and third quarter price increases on rod are several times greater than the 3% price increase sought in the steel industry's petition, and the rod industry is unable to meet demand, causing current supply problems such as delayed deliveries and canceled orders. It was stressed over and over by the AWPA witnesses before the TPSC that additional duties will devastate the wire producing industry which must compete with foreign wire producers who will continue to have global access to rod.
Due to the aggressive effort at the ITC, AWPA was able to deter the 50% quota rate requested by the rod industry. Rather, two of the three Commissioners who found injury in May recommended 15% duties on most of the rod imported into the US, while the Chairman recommended 7% duties.
The USTR has asked the ITC for supplemental information to add to the record, specifically on profitability and capacity utilization, as well as the latest price increases on rod. This data collection has delayed the president's final decision until September 27; the Monday following the AWPA Fall Meeting.
The AWPA members have demonstrated the strengths and benefits of an active grassroots lobbying campaign. The case is now entering the final phase, but the lobbying is not done.
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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
