US producers push for S201 measures to remain in force

US producers push for S201 measures to remain in force

The representatives of the leading US steel companies called for the Bush administration to keep the steel safeguard measures in force for the initially planned full three-year period, ending in March 2005. The steel industry committee represents US Steel Corp., International Steel Group, Ispat Inland Inc., and steel labour unions. The committee strongly emphasized the importance and necessity of these steel safeguard measures remaining in force for the full three years claiming that the US product prices have still not recovered as desired after having fallen well below the 20-year averages at the time when Bush imposed the safeguard tariffs of up to 30% under Section 201 of U.S. trade law. The US producers and labour unions believe that removing the tariffs would be weakening the steel industry and leading the industry back into crisis. Following the fact finding studies regarding the impacts of safeguard measures on steel consuming industries, the Bush administration is due to decide by September whether market conditions warrant leaving the Section 201 tariffs in place for another year and a half. The administration describes the tariffs as temporary protection from a sharp increase in imports and a measure meant to give the U.S. steel sector time to scale back its inefficient capacity.