The letter, which refers to AISI's just-released "Report on US Indirect Steel Trade from 2005 to 2009," emphasizes that the United States continues to run a significant indirect steel trade deficit with the rest of the world that will increase if the US does not enact a pro-manufacturing agenda and create an international level playing field. Further, AISI outlines specific policy recommendations that the Administration should follow in order to achieve its export goal.
•· Address Chinese currency manipulation - By undervaluing its currency, China effectively provides an export subsidy to its manufactured goods, giving Chinese producers an unfair advantage in their home market and in third country markets.
•· Enforce trade agreements - The US must exercise fully its rights under existing trade agreements and bring WTO cases wherever appropriate.
•· Negotiate better trade agreements - US trade agreements should not be limited to removing traditional barriers like tariffs, but should also be focused on eliminating foreign trade-distorting subsidies, non-tariff barriers, raw material export restrictions and other trade-distorting practices.
•· Enforce trade laws - AISI feels the US will not be able to double its exports in five years if competitive US manufacturers are weakened by dumped and subsidized imports from less efficient foreign producers.
Concluded AISI, "approximately 70 percent of US exports are manufactured goods, and roughly 75 percent of manufactured goods contain some steel".