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October 5, 2006

Knollenberg leads effort to relieve manufacturers from outdated steel tariffs

50 members of Congress join request to revise International Trade Commission rules

WASHINGTON , D.C. – Congressman Joe Knollenberg (R/MI-09), along with 50 of his colleagues in the U.S. House, today sent a letter to the International Trade Commission (ITC) requesting a change in procedure to allow American manufacturers a place in its decision-making process.

The letter asks the ITC to consider the potential effects on steel-consuming manufacturers – such as the auto industry – when making decisions regarding tariffs on imported steel.  Currently during the tariff review process, the ITC only considers the effects of tariffs on the steel producing industry.

“American manufactuerers have taken a back seat in this process for far too long.  The competitiveness of our manufacturers relies on fair-priced raw materials and it is time the ITC realizes the negative effects these tariffs have on our jobs and on our economy,” Congressman Knollenberg said. “Steel consuming industries employ more than 50 workers for every one worker in the steel-producing industry. The ITC must balance their decisions to reflect this reality.”

An excerpt from the letter follows:

“As the International Trade Commission reviews current antidumping (AD) and countervailing (CVD)  duty orders on certain corrosion resistant carbon steel flat products from several countries, we urge the Commission to render a decision that recognizes the fundamental restructuring of the steel industry as well as the importance of this product to the competitiveness of America ’s manufacturing sector…

The law requires the Commission to terminate the corrosion resistant steel restrictions unless doing so would likely lead to recurrence of material injury to the steel industry.  This rule reflects an important policy balance: industries are entitled to be shielded from dumping and subsidization when they face material injury, but when those industries are prospering, the restrictions should be lifted to restore competition to the marketplace.  Failure to do so can threaten other sectors of U.S. industry, particularly when an industrial raw material is involved. 

The domestic steel industry is thriving and the revocation of the AD/CVD orders on corrosion resistant steel is critical to the competitiveness of the U.S. automotive industry.  Therefore, we urge the Commission to revoke these orders on corrosion resistant steel immediately.”

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