Auto Suppliers Urge Trade Commission to Eliminate Duties That Drive Up Steel Prices

WASHINGTON, March 1 -- The U.S. auto supplier industry today urged the International Trade Commission to eliminate certain duties on imported steel, saying the duties have distorted the steel market in the U.S., contributing to unprecedented bankruptcies and job losses among steel users.

The ITC will hold hearings tomorrow and next month to consider dropping anti-dumping and countervailing duty orders on certain kinds of steel.

"Despite the removal of Section 201 steel safeguard tariffs more than a year ago, domestic steel consumers are suffering from a distorted market for steel. Suspending or lifting specific duties that are no longer necessary may address allocation problems and delayed deliveries," said Ann Wilson, vice president of government affairs for the Motor & Equipment Manufacturers Association (MEMA).

"We see the hearings as a first step in providing a level playing field for auto suppliers and other manufacturers who rely on a stable steel market," Ms. Wilson said.

MEMA represents more than 700 motor vehicle product manufacturers with nearly 12,000 U.S. plant locations and 830,000 workers.

Last month, MEMA released findings of a new study showing how steel prices have risen in recent months. "The study made it clear that steel availability and the record high price of steel is being fostered by the U.S. government and is causing a crisis that has impacted automotive and heavy duty suppliers across the country," Ms. Wilson said. "By revoking these needless duties, the ITC has an opportunity to remove a good deal of distortion from the steel market."

Ms. Wilson said auto suppliers have been heartened by growing support from Congressional representatives for a resolution (H. Res. #84) introduced recently by Rep. Joe Knollenberg (R-MI) urging the ITC to consider the impact of the duties on domestic steel-consuming companies and the overall economy. In introducing the resolution, Mr. Knollenberg called the issue one of "fundamental fairness."