Testimony of Lewis E. Leibowitz
Hogan & Hartson LLP
Washington, D.C.
Counsel to Consuming Industries Trade Action Coalition
November 9, 2001

Good afternoon. My name is Lewis Leibowitz, counsel to CITAC. I will briefly explain our opposition to the proposals for tariffs, quotas or floor prices as remedy measures in this case.

    1. It will do much more harm than good. This is a tax increase in a recession. Downstream industries will lose employment and market share to imports of downstream products. Most of these products cannot bring their own trade remedy actions.
    2. The domestic producers ask for four years of relief. After three years, our trading partners will ask for compensation. Who will be tapped to pay it, on top of the devastation visited on steel using industries?
    3. After four years, the domestic producers will ask for four more years. Their tariff degression is pitiful and will only addict them to more protectionism for the maximum eight years. Thereafter, we'll probably see legislation to give them perpetual help, if there is anyone left to sell to in the U.S.
    4. Maximum tariffs are certain to be challenged in the WTO and likely to be found inconsistent with our international obligations. If we do not conform to the requirements of the WTO rulings, retaliation on a grand scale will be in the offing. Which exporters will be hit?

I would now like to introduce John Kennedy, CEO of Autocam Corp.





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