ITC investigates impacts of safeguards on steel consumers
The
US International Trade Commission (ITC) initiates a general factfinding investigation to study and evaluate the current competitive conditions facing
US steel consuming industries with regard to the tariffs and tariff rate quotas implemented as safeguard measures on imports of certain steel products.
For the mid-term review investigation instituted by the ITC on March 5, 2003, a report concerning the ITC's monitoring of developments related to the domestic industry since the implementation of safeguard measures implemented by the Bush administration, needs to be issued.
In the general factfinding report, ITC will analyse sectoral lines in order to assess the impact of differing segments of the
US manufacturing sector and examine the data as it relates to steel products on which the safeguards were imposed. To the extent possible, the investigation will address the effects of the safeguard measures on steel consuming industries and on industries which rely on steel imports, such as ports.
The basis issues to be considered by the ITC on its report are:
•changes in employment, wages, profitability, sales, productivity, and capital investment of steel-consuming industries;
•the reported effects of the safeguard measures on factors such as steel prices paid by consuming industries, steel shortages/availability, the ability of steel consumers to obtain required products or quality specifications, lead times and delivery times, contract abrogation, sourcing of finished parts from overseas by customers of steel consumers, and the relocation or shift of U.S. downstream
production to foreign plants or facilities;
•the impact of international competitive factors, such as relative differences in steel costs to foreign steel-consuming industries, on steel consumers' exports and imports of steel-containing products;
•any shifts in steel-consuming patterns in the United States, i.e., how much steel was purchased from domestic steel producers by U.S. steel-consuming industries before the safeguard action, and how has this sourcing changed following the implementation of the safeguard measures; and
•the likely impact on employment, profitability, capital investment, and the international competitiveness of steel-consuming industries of continuation of the safeguard measures for the period September 2003 - March 2005 and of termination of the measures effective September 20, 2003.
The report, in which an analysis of the potential economy wide effects of the safeguard measures will also be included, will be presented to the President and the Congress by September 20, 2003.