CITAC BYRD AMENDMENT WORKING GROUP LAUNCHED TO PUSH
FOR REPEAL OF "TRADE DISTORTING CORPORATE WELFARE PROGRAM"

Washington, DC: Declaring "this is right time' to work toward repeal of the "Continued Dumping and Subsidy Offset Act," commonly referred to as the "Byrd Amendment," a group of consumers and consuming industries today launched the CITAC Byrd Amendment Working Group. The broad-based coalition seeks to end payments of public funds to private companies. Members of the Working Group cite multiple abuses of Byrd Amendment disbursements, including a growing number and broadening of scope of trade cases and competitors who receive tens of millions of dollars in unwarranted subsidies.

The Byrd Amendment Working Group held its inaugural meeting today at the U.S. Capitol with House Ways and Means Committee member and Chairman of its Oversight Subcommittee, Rep. Jim Ramstad (R-MN), and Chairman of the Ways and Means Subcommittee on Trade, Rep. Clay Shaw (R-FL) invited to attend. Earlier this year Reps. Ramstad and Shaw introduced HR 1121, a bill that would repeal the Byrd Amendment.

"The Byrd amendment is bad trade policy and bad fiscal policy and ought to be scrapped," said Ramstad who addressed attendees at the event. "The Byrd Amendment must be repealed because this illegal subsidy provides financial incentives for companies to seek anti-dumping and countervailing duty rewards. This is time, effort and capital that is being wasted chasing court cases rather than contributing to our economy and creating jobs."

"Because we haven't yet repealed the illegal Byrd Amendment, American exports have been subjected to retaliation, and the U.S. faces a much greater task in convincing other countries to make their own laws compliant with international rules," said Ramstad.

In March 2005, the European Union and the Canadian government announced that U.S. products would be subject to retaliatory tariffs beginning May 1, 2005. The EU has now imposed a 15 percent duty on various types of paper, clothing, fabrics, footwear, and machinery — amounting to tariffs worth approximately $28 million, and Canada has imposed like duties on cigarettes, oysters and live swine worth $14 million. Both governments will review the products each year against the fluctuating amount of Byrd disbursements. The retaliatory decisions followed a 2002 World Trade Organization dispute settlement panel that ruled the Byrd Amendment in violation of U.S. trade obligations, a decision later upheld by the WTO Appellate Body.

"More than $1 billion has been paid directly to U.S. companies who file and support antidumping and countervailing duty petitions that result in duties," said Steve Alexander, Executive Director of CITAC and President of the CMR Group. "Last year alone, Byrd payments totaled $284 million. We all have to work together to repeal this law."

The Byrd Amendment Working Group emerged from CITAC’s "CDSOA Reform Coalition." The group is incorporating a strategy consisting of a major media and communications effort, Capitol Hill and Executive Branch lobbying campaigns, combined with a legal strategy to press the strongest arguments for repeal and to secure industry and political support.

Lori Denham of the Retail Industry Leaders Association and Erik Autor of the National Retail Federation who are co-chairing CITAC's lobbying effort, stressed the uphill battle the CITAC effort will face. Said Denham, "The Byrd Amendment hurts American consumers. More and more of our products are being hit with trade petitions for consumer products that simply cannot be sourced in the U.S., driving up the cost of the product and making business less competitive. We intend to educate policymakers on these issues and keep pushing until the bill is repealed."

Echoing Denham’s comments, Autor stated, "While those that receive the Byrd windfall payments obviously work hard to keep this amendment alive, the CITAC Byrd Amendment Working Group will be a strong, unified voice for consumers and consuming industries across a spectrum of industries to get rid of Byrd."

"We intend to fight for repeal of the Byrd Amendment every step of the way," said Alexander. "We will utilize economic analysis to pinpoint which companies and regions are the major recipients of Byrd handouts over the years, and what they are and are not doing with the money. We want to highlight those companies that exist solely for Byrd funds. We are pushing this forward full steam ahead."

Byrd Amendment Working Group companies include: National Retail Federation, Michelin North America, Retail Industry Leaders Association, The Bombay Company and the Precision Metalforming Association.

CITAC is a major trade organization headquartered in Washington, D.C. with the primary objective of ensuring that manufacturers in America have access to reliable supplies of globally-priced materials necessary for those industries to compete in the world economy.

CITAC’s mission is to improve the position of downstream manufacturers, retailers and other companies that do not receive adequate consideration under U.S. trade laws; to provide legal standing for retailers, industrial users and consumers of goods in antidumping, countervailing duty and safeguard cases; to make trade remedy cases consider the needs of consuming industries, including retailers and manufacturers; and to provide a substantially stronger position before Congress for consuming industries when trade issues are debated, whether the issue is trade remedy laws, quotas, tariffs or other trade barriers.