US product exclusions

US product exclusions

After the implementation of S201 tariffs by the Bush administration in March 2002, the Department of Commerce (DOC) and the US Trade Representative Office (USTR) were delegated to evaluate the requests submitted by the US steel producers and consumers as well as the foreign steel exporters. Up until today the US Trade Representative Office and the Department of Commerce have announced 392 product exclusions in total, 150 of which were published on June 5, additional 61 on June 7, 134 on June 14 and an addition of 47 on June 17. Upon implementation of S201 safeguard measures, some countries started to prepare to impose retaliatory tariffs for imports to their countries. China was the one who slapped nine types of steel products by 7 to 26 percent tariffs to be valid for six months, on May 24, 2002. Now that the US Trade Representative Office started the exclusion of products Japan, last week announced that believing the US has constructive intentions in these exemptions they decided to put off their proposed 100% retaliatory tariffs.Officials state that total exemptions Japan received so far amount to approximately 400.000tons. Meanwhile it is reported that Japan is planning talks with China to revoke their tariffs because they believe that China had to impose tariffs due to US S201 implementations. It appears that the US will be publishing further exclusions in the following weeks. There is an argument raised by the US steel producers that these product exemptions are damaging the effectiveness of the safeguard measures whereas the officials say that they are aiming to exempt products that are not produced by the US mills. Latest exemptions include mainly flat rolled steel as well as 13 grades of plate, stainless steel and tin mill products. The set date for completion of the product exclusion process is July 3, 2002.