AIIS: Steel import restrictions will harm supply chain

The American Institute for International Steel warned the ITC during a hearing Tuesday that trade restrictions on hot-rolled steel imports would have a negative economic impact.    The American Institute for International Steel warned the U.S. International Trade Commission during a hearing Tuesday that trade restrictions placed on hot-rolled steel flat products from seven countries would have a “negative effect” on the supply chain and economic growth.
   Six U.S. steel producers – AK Steel Corp., West Chester, Ohio; ArcelorMittal USA, Chicago, Ill.; Nucor Corp., Charlotte, N.C.; Steel Dynamics, Fort Wayne, Ind.; and United States Steel Corp., Pittsburgh, Pa. – requested antidumping duties on hot-rolled steel from Australia, Brazil, Japan, the Netherlands, South Korea, Turkey and the United Kingdom, and countervailing duties on imports of the products from Brazil, South Korea and Turkey in a petition filed to the ITC on July 28.
   Dumping occurs when imported products are sold in the United States at less than fair market value, while countervailable subsidies are financial assistance given to domestic industries by governments to promote exports over imports.
   Lawrence Hanson, an attorney representing AIIS, warned “further restraint on imports of foreign steel would result in weakening the economy of the steel supply chain in the United States and threaten the jobs of members within that chain.
   “Additional duty on the hot-rolled steel flat products at issue heightens the barrier to entry of these kinds of products and, as a result, sustains an advantage for domestic producers while discouraging foreign importation. This can have a negative impact upon economic growth and domestic production at efficient cost levels. Layoffs within the international steel supply chain are a likely result,” he said.
   ITC staff is scheduled to file a report with the commission regarding the complaints by Sept. 18. The ITC is required to reach a preliminary determination in the case by Sept. 25 and to transmit its decision to the Commerce Department by Oct. 2.