Washington, DC – The Consuming Industries Trade Action Coalition Steel Task Force (CITAC STF) today applauded Rep. Joe Knollenberg (R-MI) for his introduction of House Resolution 84. This resolution calls on the International Trade Commission (ITC) and the Department of Commerce to take into account, and report on, the impact on steel-consuming manufacturers and the overall economy of continuing dumping duties on imported steel when conducting Sunset Reviews on existing dumping orders on steel products.
"We recognize that antidumping and countervailing duty remedies (AD/CVD) are appropriate trade protection in certain instances, but we also believe that those remedies should be used only when it is clear that they will not cause greater harm than good to the overall economy," said William E. Gaskin, President of the Precision Metalforming Association (PMA) and a CITAC member. "However, these remedies should remain in place only as long as necessary to protect the industry in question, and be removed when the circumstances that led to their imposition have clearly changed."
"During the past year, steel consumers in the U. S. have experienced shortages of steel, long lead times for deliveries, uneven quality and higher prices than elsewhere in the world," Gaskin continued, "and that has made it increasingly difficult for U.S.-based steel consuming manufacturers to compete in the global economy. And given the robust financial performance of the domestic steel industry in recent months, and the contrasting poor financial performance of their downstream customer base, it is hard to imagine why continued restrictions on imported steel are needed."
The Department of Commerce and the ITC have the authority to consider the impact on steel consumers, according to Lewis Leibowitz of Hogan & Hartson, CITAC general counsel, but are not required by statute to include that information in their analysis before determining whether to continue an existing dumping order.
"It is entirely within their current authority to consider the impact of dumping orders on the overall economy," said Leibowitz. "H. Res. 84 simply recognizes that authority and urges Commerce and the ITC to use it."
"Steel consumers need access to adequate, reliable supplies of globally-priced steel in order to remain competitive against increasingly aggressive foreign-based suppliers," said Gaskin. "In today's environment, the U.S. can ill afford to keep import restrictions in place after their purpose has been served."
CITAC is a coalition of companies and organizations committed to promoting a trade arena where U.S. consuming industries and their workers have access to global markets for imports that enhance the international competitiveness of American firms. The CITAC STF is a coalition of companies and organizations representing steel consumers and related industries.