Rebounds of the repeal of S201 sanctions continue in US
Last week, President Bush terminated the safeguard measures which were in effect since March 2002 and consequently incensed the largest steelworker union in the US, as well as striking positive reactions from steel and related enterprises all over the world. United Steelworkers of America (USWA) stressed that the termination of S201 measures, in an effort to avoid a trade war triggered by EU's and Japan's retaliation threats, indicates to a political move rather than an economic one. According to the union, if the decision was taken by economic reasons, safeguard measures should not be removed as steel industry and companies in the US were still suffering despite the implemented measures. Besides, EU chose imports from states, such as Florida, North and South Carolina and Pennsylvania, which play a major role in elections for retaliation. USWA has pointed out that US steel industry which consists of many small firms, on the contrary to the EU, needed more time to recover and gain competitiveness against foreign steel producers. It is obvious that steel consuming industries like automobile, appliance and construction will benefit from the termination of steel tariffs most.