ITC releases reports on S201 impact survey on domestic steel industry

ITC releases reports on S201 impact survey on domestic steel industry

The US International Trade Commission (ITC) released today the reports on the 6-month investigations conducted on S201 sanctions and their impacts on particularly the steel-consuming industries. The investigations were initiated in March 2003, to serve as interim reviews on the steel safeguard measures which were imposed in March 2002, as per requirements under the international trade rules. The ITC reports will be presented to the US President Bush as well as the Congress, giving detailed information on the impacts and developments related to the US steel industry, since the implementation of the safeguard measures. The investigation is focused on the products of stainless steel, tubular steel, flat steel and long steel. ITC held hearings at which US steel producers, steel workers, foreign steel producers, US steel product importers, US purchasers of steel products, and governmental witnesses. According to the reports released, a slight negative impact is seen on the US economy due to the hefty measures. The loss caused by the safeguard measures is around $30.4 million for the first year, in terms of economic growth. This is seen of negligible importance in an overall economy worth $10 trillion. Based on these reports, President Bush is expected to decide whether to end the safeguard measures before they are overdue or to keep them in place until the originally intended full three-year period is completed. Basically, the complaints have been coming from the manufacturers' side with regard to these tariffs, as they lead to significant job losses. Nevertheless, the intersecting point of both the supporters and opponents of the safeguard measures is that the US has used the tariffs successfully, finding the recovery of the industry in terms of consolidations and labour union agreement. Having received the extensive reports by the ITC, it will now be in the President's hands to make the final decision. The common sentiment in the industry is that President Bush is under the pressure to lift these tariffs earlier than scheduled, with concerns of the elections that will take place next year. It should also be kept in mind that US still faces the retaliation threat by the EU of US exports worth $2.2 billion in case the tariffs are not ended at the soonest time and the possibility of losing the appeal against WTO ruling.