In an unprecedented move, the domestic wire rod producers have requested
that Canada and Mexico be included in the current Tariff Rate Quota (TRQ)
Program covering carbon wire rod imports citing there has been a surge
of imports from these two exempt countries.
Using the Section 312 provision in the NAFTA implementation act, four
rod producers filed a petition with the International Trade Commission
(ITC) stating that the surge in imports from Canada and Mexico is undermining
the relief from the TRQ program. Imports of wire rod from Canada have increased
by 28.8%; from Mexico over 50%.
As part of the investigation, the ITC convened a "staff conference"
on August 8, 2001 where petitioners, interested parties, and consumers
could present their arguments before the ITC staff. AWPA participated by
having Joe Downes from Leggett & Platt testify, as well as Kimberly
Korbel, Fred Waite and Kim Young from AWPA.
AWPA argued forcefully against the inclusion of these two countries.
Contrary to what petitioners claimed, AWPA again cited the one million
ton shortfall in domestic production, as well as the fact that domestic
rod suppliers could not meet demand of the wire industry. Representatives
from Canada and Mexico suppliers argued that there was no surge in imports
to the US during the last 18 months.
The ITC is expected to make its recommendation to the president on August
23. If the vote is affirmative, the president could alter the remedy to
extend the TRQ to imports from these two countries for the balance of the
three-year program. This is the first Section 312 investigation ever undertaken
by the ITC.
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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
