AWPA Wireline - October 2004

AWPA recently held its annual Government Affairs Conference in Washington, DC during which attendees heard about the OECD Steel Subsidy negotiations, the Steel Import Monitoring program, the importance of grassroots lobbying, and the results of the third AWPA Industry Identification statistical project.

Joel Blackwell, otherwise known as "The Grassroots Guy," opened the General Session with a very lively presentation on the importance of grassroots lobbying or "personal political power." The best way to deliver your message to your lawmakers is either through personal visits or personal letters. Also, let legislators and their staffs know how the issues being discussed will directly impact their district and constituents. And make sure they know what you want and how much you care about the issue.

During the visit or in the letter you want to introduce yourself and tell a story or anecdote. Then tell them why it is a good idea for them to support you in your request. He primed the group on what to expect during their meetings, and imparted valuable advice on what to do during the Hill visits. Joel was so effective that he is likely to return for an encore performance at a future AWPA event.

Next attendees learned about some of the specific issues they would be discussing during their Hill visits. Dan Ikenson, International Trade Specialist from the Cato Institute gave a presentation on trade issues as seen from both presidential campaigns.

Dan believes that the Bush Administration has been pretty good on trade liberalization. For instance, officials have negotiated and implemented several free trade agreements; launched the Doha Round of multilateral trade negotiations; and shepherded the accession of China into the WTO. However, Bush has also initiated some anti-trade liberalization measures such as capitulating to the steel industry by implementing the section 201 tariff program; and has caved in to the textile industry.

As for Bush's opponent, Ikenson stated that Sen. Kerry also has a decent trade record. For example, he voted for Trade Promotion Authority (TPA), NAFTA and the Uruguay Round. But his presidential trade platform is "scary." Kerry has stated that he would veto the Central American Free Trade Agreement (CAFTA) because he wants more environmental and labor regulations added to the agreement. He also would institute a 120-day review of all current free trade agreements.

Ikenson concluded that the US needs some type of trade law reform. Currently there are 188 existing antidumping and countervailing duty orders in effect against steel. But, there probably will not be much change after the elections. The 109th Congress will have to renew TPA, and address about 5 or 6 pending adverse decisions. However, unless there is a broad-based coalition making a lot of noise on Capitol Hill, there probably will not be any congressional action on trade law reform.

Kimberly Korbel reported the results of the third AWPA Industry Identification statistical project. The US wire and rod industry contributes a great deal to our nation's economy. We have 156 facilities generating $9.76 billion in annual sales. These companies employed over 21,000 workers in 23 states and spent $923 million on annual payroll.

Following the General Session, 45 attendees visited over 70 legislative offices on Capitol Hill. During these meetings AWPA member company representatives asked their lawmakers to send letters to the Department of Commerce requesting that wire and wire products be included in the scope of the OECD Steel Subsidy negotiations and steel import monitoring program (see box). To date, 21 legislators have complied. Additionally, a letter signed by 72 Members of Congress urged the Commerce Department to continue the SIMA program and extend its coverage to additional steel products, including wire and wire rod, wire strand and rope, barbed wire, wire fencing and netting, chains, nail and staples, fasteners, and miscellaneous wire products (which include garment hangers).

Here are some details about the two major issues raised during the Hill meetings:

OECD Steel Subsidy Negotiations

In December 2002, representatives of major steel-producing countries agreed to initiate negotiations under the auspices of the Organization for Economic Cooperation and Development (OECD) for the purpose of reducing or eliminating trade-distorting subsidies in the steel sector. While a consensus has emerged among the participating countries that steel wire should be covered, agreement has not been reached on the treatment of wire products.

The AWPA has urged the US Government to support coverage of wire products. However, there has been minimal support among participating countries for the inclusion of wire products and most other downstream steel products in any eventual agreement. Only the US and Mexico have taken the position that wire products should be included.

Steel Import Monitoring Program (SIMA)

On August 25, 2004, the US Commerce Department requested comments concerning its system for monitoring and licensing imported steel products. This system was adopted in connection with Section 201 safeguard remedies on certain steel imports, and it currently covers stainless steel wire and stainless steel wire rod, but not carbon and other alloy steel wire, wire products or wire rod. Under the SIMA system, import licenses are required for imports of certain steel products that were covered by the safeguard action.

The AWPA supports the continuation of the SIMA program for monitoring imports of stainless steel wire, and it urges the Commerce Department to modify the scope of the current system to include carbon and alloy steel wire and wire products.

Shawn Oliver from Delta Wire and Janet Kopenhaver, AWPA's Director of Government Affairs, meet with Senate Rules Committee Chairman Trent Lott (R-MS).

John Martin greets Rep. Henry Brown (R-SC) at the AWPA Capitol Hill reception.

Joel Blackwell energizes attendees and explains the importance of grassroots lobbying.

Attendees listen carefully to helpful hints for their Hill visits.

John Martin, President of Mar Mac Wire "introduces" himself to the attendees in preparation for his Capitol Hill visits.