Automakers pull together in lobby to end AD duties

Six automakers have joined together to lobby the International Trade Commission to end tariffs on rust-resistant steel. The auto industry, including General Motors Corp., Ford Motor Co., Daimler Chrysler AG, and the U.S. branches of Honda Motor Co., Nissan Motor Co., and Toyota Motor Corp., is putting pressure on the Bush administration to drop antidumping duties on certain types of steel. The auto industry's argument is simply that the steel sector no longer needs trade protection and that money-losing car makers need greater access to cheaper imported steel. For months now, automakers and suppliers have complained about the rising steel prices, especially specialty steels such as galvanized corrosion-resistant steel - a high-value steel used in the manufacture of cars. While the tariffs are meant to protect US steel makers from dumping by foreign competitors, some automakers argue that these duties, which they consider to be outdated, hurt American manufacturing competitiveness and US jobs. Josephine Cooper, Toyota group vice president commented, “A great deal has changed in the steel industry since the duties were put in place 13 years ago. There is no longer an economic basis for keeping these duties. The steel industry benefits from unnecessary protection while the duties hurt a much wider sector of the US economy.”