Section 201 Steel Investigation

On March 5, 2002, President Bush issued his remedy decision in the Section 201 Steel investigation. Most of the imported steel products needed by CITAC members became subject to a 30% tariff during the first year of relief starting March 20, with lesser duty amounts for the subsequent two years of the three-year program.

While CITAC and steel consuming companies were very disappointed in this decision, we are continuing to aggressively work with Congress and the Administration to make the program as least harmful to American manufacturers as possible. In this vein, we are pursuing two objectives:

  1. Currently, the product exclusion process has been extended by 120 days, although the provision is not written in very specific terms. We are requesting the Administration to also accept new product exclusion requests during this four-month period. We are asking Congress to help us achieve this goal.

  2. As written, this remedy program contains no provision for handling products that are in short supply or not made here in the US. CITAC has prepared draft language that we are requesting be added to the remedy program. This language is essential to cover those steel products that may in the future be in short supply. Again, Members of Congress can help ensure that steel consuming companies in their districts and states are protected by assisting us in getting this language added to the program.

This decision is certainly a setback to US downstream industries that depend on access to steel raw materials at globally competitive prices. However, there are still ways to make it more fair to American manufacturers - many of which are small- and medium-sized companies. And we will continue to aggressively voice our views and concerns as steel consumers in the trade policymaking debate.

CITAC is requesting that Members of Congress - all of whom have constituents employed in steel consuming companies - convey these requests to the President and Administration trade officials.

For more information, contact Janet Kopenhaver, CITAC Executive Director.





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