TRADE. Changed Circumstances for Wire Rod On April 26, 2005, the US Commerce Department began a "changed circumstances" review of the antidumping duty order against carbon and alloy steel wire rod from Ukraine. This review was requested by the Government of Ukraine, and its purpose is to determine whether Ukraine should be considered as a market economy country in future US antidumping proceedings. In the original investigation that led to this antidumping order, Commerce treated Ukraine as a non-market economy country and imposed a dumping duty of 116.37% on all Ukrainian producers and exporters of wire rod. A determination by Commerce that Ukraine is a market economy would probably make it easier for Ukrainian rod mills to achieve a lower dumping margin in annual administrative reviews of the antidumping order. Since the next review of this order may be requested in October 2005, this changed circumstances request is well timed. . Portman Confirmed as USTR Representative Rob Portman (R-OH) was unanimously confirmed by the Senate as the new US Trade Representative. He was immediately sworn in and flew to Paris to meet with counterparts seeking to break a deadlock holding up progress in the WTO Doha negotiations. Portman comes from a strong manufacturing district in Ohio and understands the problems manufacturers face. He is well-known and highly respected on both sides of the aisle in Congress. His confirmation had been threatened by a "hold" placed by Indiana Senator Evan Bayh, who sought assurances that a countervailing duty bill concerning China would be debated and voted on. Bayh agreed to lift his hold after conceding that his action had elevated attention to the need to provide offsets to Chinese subsidies. During his confirmation hearings, Portman said that his top priorities are seeking congressional approval of the CAFTA, stronger enforcement of existing agreements globally and especially with China, and moving forward with the Doha Round. . Doha Moves Forward At a recent APEC trade meeting in Korea, Asian trade ministers gave a significant boost to the WTO Doha round by endorsing a formula for industrial tariff cuts that would compel many developing countries to sharply lower high tariffs on manufactured goods. The ministers issued a statement approving the so-called "Swiss" formula for tariff cuts that would require countries with high industrial tariffs (i.e., India and Brazil) to reduce duty levels by larger margins than countries like the United States that already have low tariffs. This development was the result of strong Korean and US leadership at the meeting. While Korean industry, like the US industry, has a keen interest in reducing high tariffs in developing countries, the Korean government had previously been unwilling to press this position publicly. ENVIRONMENTAL. TRI Shows Decline in Releases EPA's 2003 Toxics Release Inventory (TRI) shows that the amount of toxic chemicals released into the environment by reporting facilities continues to decline, with total reductions of 42% since 1998 and a 6% decrease from 2002 to 2003. TRI tracks the chemicals and industrial sectors specified by the Emergency Community Right to Know Act of 1986. The Pollution Prevention Act (PPA) of 1990 also mandates that TRI collect data on toxic chemicals treated on-site, recycled, and burned for energy recovery. Together, these laws require facilities in certain industries to report annually on releases, disposal and other waste management activities related to these chemicals. The TRI data and background information are available to the public at http://www.epa.gov/tri/tridata/tri03/index.htm. Communities can also quickly and easily identify local facilities and chemical releases by using the TRI explorer mapping tool available at http://www.epa.gov/triexplorer. LEGISLATION. China Bills Several bills have been introduced in the Congress that deal with China. HR 2414, introduced by Mike Rogers (R-MI), would require the Secretary of the Treasury to analyze and report on the exchange rate policies of the People's Republic of China, and to require that measures consistent with the obligations of the US under the World Trade Organization (WTO) be taken to offset any disadvantage to US producers resulting from China's exchange rate policies. In general, the Secretary of the Treasury shall, upon the enactment of this Act and annually thereafter, determine whether China maintains the rate of exchange between its currency and the US dollar in a manner that interferes with effective balance of payments adjustments or confers a competitive advantage in international trade that would not exist if the currency value were set by market forces. The Secretary shall also submit to the House Committees on Ways and Means and Energy and Commerce; and the Senate Committee on Finance a report on the Secretary's analysis and findings. In any case in which a report includes a rate of undervaluation, the President shall seek authorization in the WTO through expedited dispute settlement to offset the subsidy in the undervalued currency through the implementation of across-the-board equivalent tariffs based on the rate of undervaluation on the importation into the US of all products from China; and to take measures to offset the disadvantage resulting from such undervaluation to exports to China of goods and services of the US. This bill was referred to the House Ways and Means Committee. Another House bill - HR 1498 - was introduced by Rep. Tim Ryan (D-OH). This legislation would clarify that exchange-rate manipulation by the People's Republic of China is actionable under the countervailing duty provisions and the product-specific safeguard mechanisms of US trade laws. Specifically, it amends the Tariff Act of 1930 regarding countervailing duty investigations to revise the definition of countervailable subsidy to include exchange-rate manipulation. Additionally, it applies the definition of "exchange-rate manipulation" to the Government of the People's Republic of China or any other public entity within its territory. The measure was also referred to the House Ways and Means Committee. On the Senate side, Sen. Joseph Lieberman (D-CT) introduced S 377, the Fair Currency Enforcement Act of 2005 that would require negotiation and appropriate action with respect to certain countries that engage in currency manipulation. Specifically, it directs the President to begin bilateral and multilateral negotiations for a 90-day period with those governments of nations determined to be engaged most egregiously in currency manipulation; seek a prompt and orderly end to such currency manipulation; and ensure that the currencies of these countries are freely traded on international currency markets, or are established at a level that reflects a more appropriate and accurate market value. It also directs the President, at the end of the negotiation period, if agreements are not reached to end currency manipulation, to promptly institute proceedings under the relevant US and international trade law with respect to those countries that, based on ITC findings, continue to engage in the most egregious currency manipulation; and seek appropriate damages and remedies for the nation's manufacturers and other affected parties. The bill was referred to the Senate Committee on Finance. . Trade Law Bill Sen. Debbie Stabenow (D-MI) introduced a bill (S 817) that would amend the Trade Act of 1974 to create a Special Trade Prosecutor to ensure compliance with trade agreements. It was referred to the Senate Committee on Finance. . WTO Resolution Rejected The House of Representatives overwhelmingly rejected a move to withdraw the United States from the World Trade Organization (WTO), but by a slightly smaller margin than a similar vote five years ago. In a 338-86 vote, the House rejected a resolution that would have dropped Congress' approval for continued US participation in the WTO. A similar resolution failed in 2000 by a vote of 363-56. After the Bush Administration sent an analysis in April on the value of US participation in the global body, Reps. Bernard Sanders (I-VT) and Ron Paul (R-TX) introduced a resolution calling on the US to withdraw from the WTO. As mandated by Congress, the United States evaluates the WTO agreement every five years. Even WTO supporters said the organization presents many problems, including the lack of progress on ongoing negotiations, formally called the Doha Development Agenda, and a dispute-resolution system they described as overreaching. They nevertheless said withdrawing from the WTO would be a mistake.
 American Wire Producers Association |
