At a trade conference hosted by the Consuming Industries Trade Action Coalition
(CITAC), steel users stressed that the problems experienced by downstream
users are rarely considered in trade cases. (CITAC is a growing coalition
of companies and trade associations concerned about keeping open the channels
of trade. The focus is on government restrictions that fail to consider
the necessity for consuming industries to have open access to imported
raw materials.)
AWPA's Executive Director Kimberly Korbel was one of the featured speakers
at this Free Trade Conference. She told the audience that AWPA members
have had to appear before the ITC "eleven times in the last decade defending
our industry against stainless and carbon rod cases seeking protection.
Additionally, we fought the only 201 trade case last year."
Agreeing with fellow panelists, Kimberly added that, "A severe consequence
of trade cases is the high impact on industry pocketbooks." Further adding
to the problem is that consumers don't have a choice in defending cases;
petitioners have the control over whether or not there is a trade case."
She concluded, "Consuming industries tend to be small to medium-sized companies
who don't necessarily have strong lobbies. Our companies tend to focus
on their businesses, not expending money on filing trade cases."
Lewis Leibowitz, organizer of CITAC, advised the audience, "We need
to improve our trade procedures and remedies by giving consuming industries
a role in the process." He advocated that duty amounts should be limited
to actual damages. "The difference between what is needed and what is awarded
is raw protectionism," he concluded, "and it makes no sense to institute
duties on products not available in the US."
A CITAC-sponsored bill - Trade Law Fairness to US Industry Act of 2000
- starts the process of getting consumers involved. Basically, it requires
the consideration of consumers when deciding trade cases and policy (see
box for specific provisions in the bill). While not yet introduced, Congressman
Jim Kolbe (R-AZ), a highly respected member of the Appropriations Committee,
has reviewed the legislation and stated, "I believe it is worthy, not only
of introduction, but of enactment. I would be pleased to introduce and
sponsor this legislation." The legislator added that he intends to "prepare
the bill for introduction in the event the Ways and Means Committee or
other House Committee announces hearings on trade law changes, or if trade
law changes appear to be gathering momentum."
Brink Lindsey from the Cato Institute gave an enlightening presentation
on the importance of international trade. "Conventional wisdom is that
exports are more important," he began. "When you get a country to open
their markets to your exports, that is considered a benefit. A concession
is when you open your country to imports." However, that thinking is "completely
WRONG." The speaker argued that imports are instead the benefit of international
trade, while exports are the price you pay for more imports. Some interesting
statistics: 60% of imports are used by manufacturers (i.e., raw materials,
equipment, etc.), and less than 2% of employed Americans have import-sensitive
jobs.
Mr. Lindsey is one the featured speakers at AWPA's Fall meeting. Come
hear his views on free and fair trade, and how wire companies can help
educate Members of Congress on its importance.
Rounding out the program was a Way and Means Committee staff member
who stated up front that we "have had a fairly good year in trade." Two
hundred and fourteen Members of Congress voted for all three free trade
bills (for China PNTR, for Africa/Caribbean Basin Initiative free trade,
and against WTO withdrawal) - 146 Republicans; 68 Democrats. Another 90
voted for 2 out of 3 of these free trade initiatives.
Work still needs to be done in convincing legislators of the importance
of free markets, and especially access to foreign markets. There is still
is a lot of support for strengthening antidumping laws. Most lawmakers
view these trade laws as US vs. foreign interests. Companies in consuming
industries can help by pointing out that often a trade case becomes US
petitioners vs. US consumers. The speaker predicted that pressure will
build next year to have a hearing on antidumping laws. Rep. Phil Crane
(R-IL), Chairman of the Trade Subcommittee and potentially the new Ways
and Means Chairman, supports a lesser duty rule and the other provisions
that are being proposed by CITAC.
Provisions in CITAC Bill
This bill would 1) suspend antidumping or countervailing duties when
a product is in short domestic supply; 2) give users the right to be heard
as a party in antidumping or countervailing duty investigations; 3) adopt
the WTO-encouraged "lesser duty rule" in antidumping and countervailing
duty cases, limiting the duties imposed to the level needed to remedy the
injury suffered by the petitioning industry; and 4) guarantee that such
duties are in the public interest. The term "public interest" means that
the "imposition of countervailing or antidumping duties would not result
in a reduction of economic welfare materially greater than the economic
benefits likely to result from the imposition of such duties." Specifically,
the provisions in the bill would guarantee the following:
- Duties would not apply to products that are not available from
domestic sources or which are in "short supply."
- Consuming industries would have full party status in trade
cases. That means consumers would be able to participate fully, have access
to the record, and have the right to appeal decisions that harm them and
with which they disagree.
- Duties would be assessed only to the extent needed to remove
the injury to domestic petitioners. The "lesser duty rule" in the WTO,
which the US ignores, would be implemented in this country.
- The impact of any duties on consuming industries would not
be totally ignored in antidumping and countervailing duty cases.
- The economic and social costs that would be incurred by consumers,
taxpayers, communities and workers would be evaluated if duties were imposed.
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Alexandria, VA 22314-1757
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