As expected, the Clinton Administration released a new report on steel
imports which details plans to take aggressive new steps to protect domestic
steel producers from import surges, speeding up its use of antidumping
measures and providing faster relief for companies and workers.
The report, prepared by the Commerce Department as a result of the 1999
"Steel Trade Crisis", says the administration will start imposing duties
on imported steel faster than it has in the past ? and in some cases even
before reaching a final judgment on whether a foreign country is selling
steel in this market below cost. It is already being predicted that the
administration's pledge to use antidumping laws more actively will inflame
the already tense trade ties with Japan.
Trade officials will also break out and distribute trade data faster
on steel to help the industry spot potential import surges. Additionally,
the administration will work to address long-term "structural factors"
that cause foreign countries to sell steel at prices the US has determined
are below the cost of production. For instance, Russia has let steel exporters
escape paying bills at home, allowing them to sell goods abroad below costs;
Japan allows steel makers to help promote low-price exports; and South
Korea has unsound banking practices that have subsidized a glut of steel
production capacity.
Finally, the administration will use its influence at the World Bank
and other international lending agencies to end loans that expand steel
production capacity. It will also propose that international economic bodies
study how best to knock down informal barriers that protect and subsidize
steel companies.
The Consuming Industries Trade Action Coalition (CITAC) issued a press
release stating, "The Commerce Department study of the steel industry unfortunately
fails to address the critical issue of the effect of trade restraints on
US companies that purchase and use steel in manufacturing. Consuming industries,
and their need to be competitive, were not addressed and their views were
not sought during the preparation of the study."
The coalition also expressed concern that the recommendations for increased
monitoring of imports and an early warning system in the study could discourage
needed imports from entering the US market.
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