White House has "action program" for steel trade
By Staff -- Purchasing, 10/7/1999
The Clinton Administration has issued a new "action program" to deal with steel industry concerns about continued high levels of imports coming into the U.S. By and large, though, the proposals are only an extension of policies the White House has used over the past several months to jawbone other nations to reduce exports. While the steel industry contends the import crisis is not over because prices have not rebounded to former levels, some industry leaders welcomed the plan as a sign the administration is taking its problems seriously."We're encouraged by the recognition of the crisis and the framework to resolve the trade problems in our industry," notes Curtis H. Barnette, CEO of Bethlehem Steel and a spokesman for the large integrated mills.
"At least the president's program addresses certain key areas of both short and long-term concern to the specialty steel industry," says James F. Will, CEO of Armco and a spokesman for stainless steel mills. "The program specifically focuses on the elimination of unfair trade practices that support excess production capacity, and that is an issue we have tried to have addressed for some time," Will notes.
"I am determined to continue taking forceful action to address the unfair trade practices that have contributed significantly to the current steel-trade crisis," Clinton says. "However, we must ensure that our actions are consistent with our commitment to open markets and respect for international trade rules, just as we insist that other countries do the same."
The president says the administration will continue to talk with Japan, South Korea, and other steel-producing countries about reducing exports to the U.S. to pre-crisis levels, and about restructuring their industries to squeeze out excess capacity. He also pledged to hold a global forum on unfair trade practices that can lead to excess capacity and deflated prices.
Clinton says the administration will resist efforts by other countries to weaken U.S. anti-dumping laws during global trade liberalization talks to be launched at the end of the year. The steel action plan also includes a pledge to block World Bank and International Monetary Fund loans that would further subsidize foreign steel industries. There also will be improvements in Commerce's tracking of imports, an administration study of government subsidies received by foreign industries, and a review of other "market-destroying trade barriers" that have led to a decline in U.S. production of iron ore and coke.
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