The old adage "when it rains, it pours," looks to be very appropriate as AWPA enters the New Year. The downturn in CIS and Asian economies, and the resulting changes in the flow of steel trade, has led to:
- a $4 million dollar advertising campaign sponsored by steel manufacturers and unions that promotes a protectionist US trade policy;
- legislation pressuring the Clinton Administration to develop a plan to protect the steel industry from imports;
- the filing of a Section 201 petition by seven domestic steel producers requesting relief in the form of quotas for an initial period of four years;
- and, rumblings of legislative activity in the trade arena on Capitol Hill.
The Chinese language character for crisis also defines opportunity, a good analogy for what might lay ahead for the wire industry in Washington. During the AWPA Fall Meeting, members began the decision making process on how AWPA should respond, and took that message to Members of Congress. The 1999 Annual Meeting will provide the venue to further chart AWPA's course.
In addition to further activity at the International Trade Commission (ITC), AWPA members can expected a surfeit of legislative initiatives on Capitol Hill. Legislators that represent big steel manufacturers are aggressively calling for Congress to strengthen the trade laws this year. AWPA as part of a coalition of like-minded consuming industries and companies are devising a legislative and public relations agenda that will focus on educating Congress, the Administration and the public on the importance of imports to US job creation and the economy. Additionally, the campaign will highlight some of the issues that make US trade laws more balanced and fair to consumers of steel.
On Capitol Hill the coalition is in the planning stages of developing legislative language that may include the following provisions:
- Industrial User and Consumer Standing - Industrial Users and consumers of subject merchandise or a domestic like product may enter their appearances as "interested parties" in an investigation, administrative review, changed circumstances review, sunset review or any other proceeding affecting such subject merchandise or domestic like product. Such parties would have all rights pertaining to interested party status, including provisions relating to disclosure of proprietary information under administrative protective orders.
- Temporary Duty Suspension - DOC and ITC shall consider in all investigations, reviews and other proceedings under the antidumping and countervailing duty laws, the ability of Petitioners to produce products needed by industrial users and consumers in the US. Such consideration will extend to the appropriate scope of a petition, investigation or order and whether there injury or threat of injury with respect to a product that is not manufactured in the US, or is not available in sufficient quantities to meet domestic demand. The DOC and ITC may initiate changed circumstances reviews to determine if a product subject to antidumping or countervailing duties is in "short supply."
- Public Interest Test - Before an antidumping or countervailing duty order may be issued, the Department of Commerce (DOC) and the ITC will determine whether such an order would be in the "public interest." After an order is entered, the ITC would determine if an antidumping or countervailing duty order, in whole or in part, remains in the public interest, under rules applicable to "changed circumstances" reviews under current law.
- Lesser Duty Rule - In accordance with the Antidumping and Subsides Agreements in the World Trade Organization, the International Trade Commission will determine whether antidumping or countervailing duties less than those calculated by the administering authority would be sufficient to redress the injury or threat of injury found by the Commission to have been caused by imports of subject merchandise. If a lesser duty is sufficient to alleviate injury in the opinion of the majority of the ITC, the applicable duties and duty deposits will be adjusted.
The coalition's success will hinge on the "grassroots" involvement of companies throughout the US. While lobbyists in Washington can educate legislators and staff, support from their constituents will make or break the effort. During the 1999 Annual Meeting, AWPA has scheduled numerous experts from government, industry and academia to debate, explain and educate members on the important trade issues that will likely affect the wire industry. AWPA needs your support and full participation as policy decisions are made on how best to move forward.
The ongoing steel crisis promises to provide opportunities that may benefit consuming industries like wire producers in the future. Members attention and advocacy will play a vital role in the debate, and most importantly, the outcome.
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American Wire Producers Association
6232 Roudsby Lane Alexandria, VA 22315-5285
Tel (703) 971-6454 | Fax (703) 971-6997 | E-mail info@awpa.org
