October
17, 2006
WASHINGTON
,
D.C.
– In
an International Trade Commission (ITC) hearing today,
U.S.
auto-makers, manufacturers, suppliers and Members of Congress
joined forces to fight outdated and damaging tariffs on
imported steel.
Both
domestic and foreign owned
U.S.
auto-makers and manufacturers rely on fair-priced raw
materials to be competitive in a global marketplace. Tariffs
on imported corrosion resistant steel – initially
implemented to protect the
U.S.
steel industry – cause undue financial strain on
manufactures around the country and result in job-loss and
economic volatility.
In
a historic collaboration, representatives of both domestic and
foreign owned auto makers– including GM, Ford,
DaimlerChrysler, Honda, Nissan, and Toyota – along with
representatives of U.S. manufacturers and suppliers,
Congressman Joe Knollenberg (R/MI-09) and Congressman Mike
Rogers (R/MI-08), joined together today to testify before the
ITC against these unneeded and obsolete tariffs.
The
following are statements regarding these tariffs from members
of this partnership:
·
“American
manufacturers 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.
Steel consuming industries employ
more than 60 workers for every one worker in the
steel-producing industry. The ITC must balance their decisions
to reflect this reality.”
-
Congressman
Joe Knollenberg (MI-09), Chairman, House
Transportation/Treasury Appropriations Committee
·
“Today’s
hearing can be a turning point.
Steel tariffs have allowed steel makers to consolidate,
restructure and generally become healthy companies. They
no longer need protection from the free market, especially
since that protection comes at the expense of American jobs in
the auto industry and other manufacturing industries.”
-
Congressman
Mike Rogers (MI-08), Vice-Chairman, House Energy and Commerce
Subcommittee on Commerce, Trade and Consumer Protection
·
"For
most of the six auto manufacturers, steel is the highest
purchased item and these outdated protections are hurting
U.S.
competitiveness and jobs. Further protection is simply not
needed for a tightly consolidated steel industry that is
enjoying record profits."
-
Mustafa
Mohatarem, Chief Economist, General Motors Corp.
·
“Ford
Motor Company has joined with other auto manufacturers to call
for an end to outdated tariff protections for the steel
industry. With steel prices surging and steel companies making
record profits, these protections are an artifact of the past.
Simply
put, steel tariffs are a tax on American consumers. They
amount to a thirty percent tax on every car, every dish
washer, and every power tool made of steel that Americans buy.
Plus, the steel tax creates steel shortages, escalate
prices, accelerate instability in the
US
market, and cost American jobs.”
-
Stephen
E. Biegun, Vice President for International Governmental
Affairs Ford Motor Company
"The steel
industry's strength and profitability are well-known. We
believe their
prosperity is not
dependent on continued intervention by imposing a tax on
steel
consumption.”
-
John
Bozzella, VP, External Affairs and Public Policy,
DaimlerChrysler
·
“We
join with other steel consumers to urge the ITC to terminate
corrosion resistant steel duties in order to improve the
availability of steel in the marketplace and to promote the
competitiveness of
U.S.
Manufacturing. The
United States
needs a strong steel industry and a strong auto manufacturing
industry. Steel companies are witnessing an impressive
period of profitability compared to 13 years ago when the
tariffs were introduced, and simply no longer need this
protection.”
-
Jim
Morton, Vice Chairman, Nissan North
America
.
·
"Ending
the steel dumping duties would help assure the steady,
reliable source of new steel needed for the auto assembly
plants we are building in the
US
. Trade protection creates shortages, high prices, uncertainty
and instability in the
U.S.
steel market that is now healthy and no longer needs
protection."
-
Jo
Cooper, Toyota Group Vice President
·
“We
join the call to the ITC to revoke duties on corrosion
resistant steel. The
duties should be terminated for one simple reason - the steel
industry is healthy and strong and no longer needs protection.
Unfortunately, the ITC won’t even look at what damage
the duties are causing to PMA members and other steel
consumers because of the way it interprets
U.S.
trade law. That is
why we also support Rep. Knollenberg’s American
Manufacturing Competitiveness Act (H.R. 4217) to provide
U.S.
industrial consumers with full “interested party” standing
in these types of trade cases.”
-
William
E. Gaskin, President, Precision Metalforming Association (PMA)
·
“The
Motor & Equipment Manufacturers Association (MEMA)
represents more than 8,000 manufacturers of motor vehicle
parts, components, technology, tools, and related products
used in the production and maintenance of today’s vehicles.
Our members are significantly impacted by high steel
prices, so much so that each supplier company that has
declared bankruptcy since 2004 has specifically named steel
prices as one of the leading factors in their filings.
The
steel industry, however, has enjoyed record profitability from
the high levels of government protection in the form of
anti-dumping and countervailing duties on corrosion resistant
steel and other products.
These penalty tariffs simply are no longer
necessary.”
-
Ann
Wilson, Vice President, Government Affairs, MEMA
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