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June 18, 2001
President George W. Bush
White House
1600 Pennsylvania Avenue, N.W.
Washington, D.C.
Dear Mr. President:
I am writing on behalf of the Consuming Industries Trade Action Coalition
("CITAC"), the leading voice of downstream users of needed imported
raw materials, components and finished goods. We are concerned about the
costs to our economy of U.S. import restrictions. We strongly advocate
a trade agenda that features open markets, expanded world trade and common
sense consideration of the needs of America's consuming industries.
The plight of the integrated U.S. steel producers is now a central concern
of CITAC as well as the Administration. Frankly, we opposed the initiation
of a Section 201 proceeding, but we understand why it was done. It is
imperative that a steel initiative work to the advantage of America broadly,
rather than just a few Americans. To that end, we propose a five-point
agenda to ensure that help for the steel industry is constructive for
all Americans.
1. Give Consuming
Industries a Voice in the Process. Industries that use steel to
make products in this country need and deserve a voice in steel policymaking.
We represent 50 times as many workers as are employed in steel production.
While steel producers ask for relief, we want to make sure that consuming
industries don't unnecessarily suffer with higher prices and shortages.
Therefore, consuming industries should have a prominent place at the
table when decisions are made on the future of the steel industry, import
relief or other assistance to steel producers. Steel users know the
market and we have important information to contribute. We need "full
party status" in the Section 201 case and a constructive role when
potential remedies are considered.
2. Oppose Protectionism
for Its Own Sake (Stop H.R. 808 and companion legislation). We need
a clear statement of opposition from your Administration to H.R. 808
and its Senate counterpart. This legislation would impose five years
of WTO-illegal quotas and flout our international obligations. It would
be bad for America. The U.S. steel industry does not need relief that
would violate international law and encourage steel users to relocate
their plants outside the United States.
3. Allow Imports
of Products Unavailable from U.S. Suppliers. Steel consumers require
hundreds of steel products that are not made domestically. Many of these
products are highly specialized, but essential to production of everything
from automobiles to fire extinguishers. If Section 201 relief is ultimately
provided, a procedure must be established to exempt unavailable products
from quotas, tariffs or other import restrictions.
4. Do Not Layer
Restriction on Top of Restriction. Quota or tariff remedies under
Section 201 must not be applied along with previous antidumping or countervailing
duty relief. This would effectively lock needed products out of the
U.S. market with potentially devastating consequences for U.S. steel
consumers. If Section 201 relief is imposed, outstanding trade remedy
measures (e.g., antidumping or countervailing duty orders) should be
eliminated.
5. Do Not Rush
the Process with an Early Imposition of Quotas. Interim relief prejudges
the outcome of the Section 201 process. At the same time, it forces
steel-consuming industries to pay the heavy price of protection before
it is clear that protection is warranted.
With these commonsense and reasonable measures, assistance for the steel
industry need not devastate downstream industries, including thousands
of small businesses. We look forward to working with the Administration
and the Congress to reach the best solution to steel problems.
| Sincerely |
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Jon Jenson
Chairman, CITAC
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